What amounts should be included in gross income by the widow

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Problem 1: Howard O'Brien, an employee of Ogden Corporation, died on June 30, Year 5. 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 15-year-old son. What amounts should be included in gross income by the widow and son in their respective tax returns for Year 5?

                  Widow         Son

Option 1: $ 5,000    $ 5,000

Option 2: $ 5,000      $10,000

Option 3: $ 7,500     $ 7,500

Option 4: $10,000   $10,000

Reference no: EM132808447

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