Sundown, Inc

Sundown, Inc., purchases a term life insurance plan only for its corporate officers. Harold receives $250,000 of insurance at a cost to the company of $3,500. The IRS Table of Premium value indicates that premiums are $1.08 annually per $1,000 of protection. How much gross income does Harold have from the purchase of the life insurance by Sundown, Inc.?

A) $216
B) $270
C) $2,800
D) $3,500
E) $5,000