Sarah, who has a terminal illness, cashed in her life insurance policy (cost of $24,000 and proceeds of $50,000) to go on an around-the-world cruise. Ed paid $24,000 of life insurance premiums before cashing in his life insurance policy for the $50,000 cash surrender value. He decided he could invest the money and earn a higher rate of return. Tom's wife died and Tom collect $50,000 as the beneficiary on a group term life insurance policy purchased by her employer. Determine the amounts that Sarah, Ed, and Tom should include in their gross income.