BWS Corporation Pays the Premiums on an $80,000 Group-Term Life

BWS Corporation pays the premiums on an $80,000 group-term life insurance policy on the life of its 45- year-old vice-president, Warren. The annual cost per $1000 of coverage for a person aged 45 to 49 is $1.80. If Warren has paid $25 toward the cost of the insurance, what is the cost of the policy includible in Warren's gross income?

A) $278.00
B) $144.00
C) $54.00
D) $29.00
E) $0