John carries a $ $125,000$ insurance policy on his life. Premiums paid over the years total $$5,000.$ Dividends on the policy have totaled $$4,000.$ John has left the dividends on the policy with the insurance company. During the current$$ year, the insurance company credited $$1,100$ of interest on the accumulated dividends to John$\text{'}$s account.

a$.$ How much income is John obligated to report in connection with the$$ policy?

b$.$ Would it make any difference if the accumulated dividends equaled $ $13,000$ instead of $ $4,000?$