Milo named his wife, Khia, the beneficiary of a $100,000 insurance policy on his life. The policy provided that, upon his death, the proceeds would be paid at a rate of $4,000 per year plus interest over a 25-year period. Milo died June 25 of last year, and in the current year, Khia received a payment of $5,200 from the insurance company. What amount should she include in her gross income for the current year?
a. $200
b. $1,200
c. $5,200
d. $4,000
c. $11,500; the award from her job is excluded.
d. $11,600; the plaque may be excluded.