(Answered) Lindas husband dies naming her the sole beneficiary of a

Economics

Linda's husband dies, naming her the sole beneficiary of a $500,000 life insurance policy.

The insurance company informs her that she has two options: (1) she can receive the entire $500,000 in one lump-sum payment or (2) she can receive annual installments of $58,000 for ten years.

a. How much does Linda include in gross income if she takes the lump-sum payment?

b. How much does Linda include in gross income each year if she elects the installment payments?

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