Fran Dies on January 14, 2014

Fran dies on January 14, 2014. Her spouse, Carl, is the beneficiary of a $100,000 life insurance policy. Carl elects to receive the proceeds in 10 equal installments of $11,000. In 2014, Carl receives $11,000. The amount included in Carl's 2014 gross income is

A) $ - 0 -
B) $ 1,000
C) $ 10,000
D) $ 11,000
E) $111,000