Connor Company purchased a life insurance policy on the companys chief executive officer, Fred. After the company had paid $ in premiums, Fred died, and the company collected the $ million face amount of the policy. The company also purchased group term life insurance on all its employees. Fred had included $ in gross income for the group term life insurance premiums. Freds widow, Tanya, received the $ proceeds from the group term life insurance policy.
a
Tanya can exclude the life insurance proceeds of $ but Connor Company must include $$ $ in gross income.
b
Connor Company and Tanya can exclude the life insurance proceeds of $ and $ respectively, from gross income.
c
Connor Company can exclude $$ $ from gross income, but Tanya must include $ in gross income.
d
Connor Company must include $$ $ in gross income and Tanya must include $ in gross income.
