Exercise $5-25($Algorithmic$)($LO$.1,2)$

Leland pays premiums of $$29,750$ for an insurance policy in the face amount of $$148,750$ upon the life of Caleb and subsequently transfers the policy to Tyler for $$44,625.$ Over the years, Tyler pays subsequent premiums of $$8,925$ on the policy. Upon Caleb's death, Tyler receives the proceeds of $$148,750.$

As a result, what amount is Tyler required to include in his gross income?Feedback

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If an income item is within the all$-$inclusive definition of gross income, the item can be excluded only if the taxpayer can locate specific authority

for doing so$.$