Gary receives $40,000 worth of Quantro, Inc., common stock from his late grandmother's estate. Early in the year, he receives a $100 cash dividend. Four months later, he received a 2% stock dividend. Near the end of the year, Gary sells the stock for $42,000. Due to these events only, how much must Gary include in his gross income for the year?

Leland pays premiums of 5,000 for an insurance policy in the face amount of 25,000 upon the life of Caleb and subsequently transfers the policy to Tyler for 7,500. Over the years, Tyler pays subsequent premiums of 1,500 on the policy. Upon Calebs death, Tyler receives the proceeds of 25,000. As a result, what amount is Tyler required to include in his gross income?