Please answer the above questions including authority and reasoning.

Un e ITU NIL LLI de 5.00p.m. (Eastern Time), Sunday February 23, 2020. u .edu) and uploaded into Canvas. This 1. (a). Sam was shot and killed during a robbery at his bar. His wife, Diane, was the beneficiary of his $200,000 whole life insurance policy. Diane collected the $200,000 face value of the policy from the insurance company. Does she realize gross income from this transaction? (b). Instead, suppose Diane exercises an option in the policy to receive interest payments on the $200,000 for the remainder of her life (an amount estimated to be $10,000 annually), with the principal of the policy to be paid to her daughter upon Diane's death. Must the daughter include the $200,000 principal in her income? (c). What if Diane elects to receive an annuity of $14,000 a year? Assume her life expectancy is 20 years and there is no refund if Diane dies before receiving full payment. 2. Several years ago, Berkshire, Warren & Co., LLC, an investment banking firm, purchased 1,000,000 shares of Outron Corporation preferred stock directly from the corporation for $100,000,000. Berkshire paid for the stock by giving Outron a promissory note for $100,000,000 due in 20 years, with interest payable annually at 2 percent, which was then the prevailing market rate. Recently, Outron decided that it needed to increase its current cash flow and offered Berkshire a reduction of the principal amount of the promissory note to $80,000,000 if Berkshire would agree to increase the interest rate to the current market rate of 10%. Berkshire found the offer advantageous and accepted it. How much COD income does Berkshire realize? Are there any further tax consequences? DALL Un e ITU NIL LLI de 5.00p.m. (Eastern Time), Sunday February 23, 2020. u .edu) and uploaded into Canvas. This 1. (a). Sam was shot and killed during a robbery at his bar. His wife, Diane, was the beneficiary of his $200,000 whole life insurance policy. Diane collected the $200,000 face value of the policy from the insurance company. Does she realize gross income from this transaction? (b). Instead, suppose Diane exercises an option in the policy to receive interest payments on the $200,000 for the remainder of her life (an amount estimated to be $10,000 annually), with the principal of the policy to be paid to her daughter upon Diane's death. Must the daughter include the $200,000 principal in her income? (c). What if Diane elects to receive an annuity of $14,000 a year? Assume her life expectancy is 20 years and there is no refund if Diane dies before receiving full payment. 2. Several years ago, Berkshire, Warren & Co., LLC, an investment banking firm, purchased 1,000,000 shares of Outron Corporation preferred stock directly from the corporation for $100,000,000. Berkshire paid for the stock by giving Outron a promissory note for $100,000,000 due in 20 years, with interest payable annually at 2 percent, which was then the prevailing market rate. Recently, Outron decided that it needed to increase its current cash flow and offered Berkshire a reduction of the principal amount of the promissory note to $80,000,000 if Berkshire would agree to increase the interest rate to the current market rate of 10%. Berkshire found the offer advantageous and accepted it. How much COD income does Berkshire realize? Are there any further tax consequences? DALL