Robert, a widower, elected to receive the proceeds of a $100,000 life insurance policy on the life of his deceased wife in 10 installments of $15,000 each. His wife had paid premiums of $75,000 on the policy. Over the life of the installment contract, Robert must include in gross income: a) $0 b) $50,000 c) $75,000 d) $100,000 e) None of the above Barack is the manager of a country lodge. As a condition of his employment, Barack is required to live in a room on the premises so that he would be there in case of emergencies. Barack considered this a fringe benefit, since he would otherwise be required to pay $600 per month rent. The room that Barack occupied normally rented for $60 per night, or $1,500 per month. On average, 90% of the motel rooms were occupied. As a result of this rent-free use of a room, Barack is required to include in gross income: a) $0 b) $600 per month c) $1,500 per month d) $1,350 ($1,500 X.90 = $1,350