Question Content AreaTurquoise Company purchased a life insurance policy on the company's chief executive officer, Joe. After the company had paid $400,000 in premiums, Joe died, and the company collected the $1.5 million face amount of the policy. The company also purchased group term life insurance on all its employees. Joe had included $16,000 in gross income for the group term life insurance premiums. Joe's widow, Rebecca, received the $100,000 proceeds from the group term life insurance policy.\ a. Turquoise must include $1,100,000 ($1,500,000 $400,000) in gross income and Rebecca must include $100,000 in gross income.\ b. Rebecca can exclude the life insurance proceeds of $100,000, but Turquoise must include $1,100,000 ($1,500,000 $400,000) in gross income.\ c. Turquoise can exclude $1,100,000 ($1,500,000 $400,000) from gross income, but Rebecca must include $84,000 in gross income.\ d. Turquoise and Rebecca can exclude the life insurance proceeds of $1,500,000 and $100,000, respectively, from gross income.