Ryan is the beneficary of a $125,000 insurance policy on the life of his mother, Sarah To date, Sarah has paid prenuurs of $40,000. Requirement What anount of gross income must be reported in each of the following casos? a. Sarah elects to cancel the policy and receives $90,000, the cash surrender value of the policy b. Sarah dies and Fivan recerres the face amount of the policy, $125,000. c. Sarah dies and fyan elects to receve $35,750 per year for four years a. Sarah edects to cancel the policy and recenves $100,000, the cash surender value of the policy A. Byan ment inctude $90,000 in his income D. Sarah must include $50,000 in her encome c. Sarah must include $00000 in her income D. Ryan must anckide $50,000 in his moone Ryan is the beneficiary of a $125,000 insurance policy on the life of hes mother, Sarah. To date, Sarah has paid premiums of $40,000. Requirement What amount of gross income must be reported in each of the tollowing cases? a. Sarah elects to cancel the policy and receives $90,000, the cash surrender value of the policy b. Sarah dies and Ryan receives the face amount of the policy, $125,000 c. Sarah dies and Ryan elects to receive $35,750 per year for four years. D. Ryan must include $50,000 in his income. b. Sarah dies and Ryan recerves the face amount of the policy, $125,000. (Enter " 0 " if none of the gross income is tauable) The amount Ryan must include in his income c. Sarah dies and Ryan elects to receive $35,750 per year for four years (Enter " 0 " if none of the gross income is taxable) The amount Ryan must report as income each year for four years