Meg Was the Beneficiary of a $50,000 Life Insurance Policy

Meg was the beneficiary of a $50,000 life insurance policy when her father died at the end of 2016. The insurance company gives her the option of taking the $50,000 as a lump sum immediately or receiving an annuity of $8,000 per year for 12 years beginning in 2017. Meg takes the annuity option. What amount must Meg include in her income in 2017?

A) 0
B) $3,000
C) $3,833
D) $8,000