Leland pays premiums of $5,000 for an insurance policy in the face amount of $25,000 upon the

Question:

Leland pays premiums of $5,000 for an insurance policy in the face amount of $25,000 upon the life of Caleb and subsequently transfers the policy to Tyler for $7,500. Over the years, Tyler pays subsequent premiums of $1,500 on the policy. Upon Caleb's death, Tyler receives the proceeds of $25,000. As a result, what amount is Tyler required to include in his gross income?