Richard Is a Key Employee of Winn Corporation

Richard is a key employee of Winn Corporation. The corporation provides Richard with $120,000 of group- term life insurance coverage. Only company executives receive life insurance coverage. The premium attributable to the coverage is $1,600. The uniform one- month group- term premium is one dollar per $1,000 of coverage. How much must Richard include in income due to the policy?

A) $1,600
B) $840
C) $0
D) $1,440