Elizabeth Is the Beneficiary of an $800,000 Insurance Policy on Her

Multiple Choice

Elizabeth is the beneficiary of an $800,000 insurance policy on her husband's life.Elizabeth can elect to receive $165,000 per year for 5 years or received the entire $800,000 in a lump sum the first year.If she elects to receive the lump sum, how much is included in income in the first year.

A) 0
B) $5,000
C) $165,000
D) $800,000