Frank Clarke, an Employee of Smithson Company, Was Covered Under

Frank Clarke, an employee of Smithson Company, was covered under a noncontributory pension plan. Frank died on April 15, 2012, at age 64 and pursuant to the plan, his widow received monthly pension payments of $500 beginning May 1, 2012. In addition, Mrs. Clarke received an employee death payment of $10,000 in May 2012. This nonforfeitable death benefit was part of a group plan. What is the total amount of the above receipts that the widow should exclude from her gross income for 2012?

A) $0
B) $5,000
C) $9,000
D) $14,000