Irene's husband passed away this year. After his death, Irene received $250,000 of proceeds from life insurance on her husband, and she inherited her husband's stock portfolio, worth $750,000. What amount must Irene include in her gross income?
A. $1 million.
B. $750,000.
C. $500,000.
D. $0, but only if Irene does not opt to receive the life insurance proceeds in a lump sum.
E. $0—none of these benefits are included in gross income.
Answer: E