The following information is available for Ann Drury for 2007:

Salary

$36,000

Premiums paid by employer on group-term life insurance in excess of $50,000

500

Proceeds from state lottery

5,000

How much should Drury report as gross income on her 2007 tax return?

  1. $36,000
  2. $36,500
  3. $41,000
  4. $41,500