Howard O’Brien, an employee of Ogden Corporation, died on June 30, 2007. During July, Ogden made employee death payments (which do not represent the proceeds of life insurance) of $10,000 to his widow, and $10,000 to his fifteen-year-old son. What amounts should be included in gross income by the widow and son in their respective tax returns for 2007?
|
Widow |
Son |
|
|
a. |
$ 5,000 |
$ 5,000 |
|
b. |
$ 5,000 |
$10,000 |
|
c. |
$ 7,500 |
$ 7,500 |
|
d. |
$10,000 |
$10,000 |