Ellen is the beneficiary of a $25,000 whole life policy on the life of her grandmother. Ellen's grandmother is the owner of the policy. During 2014, Ellen's grandmother paid a premium of $750 and received a dividend distribution of $250. At the end of the policy year, the policy cash value accumulation increased by $500. What income tax liability will Ellen's grandmother incur for 2016 as a result of the $250 dividend and $500 policy CV increase? Death benefit of $25,000, CV of $8,000. What LI amount will be included in Ellen's gross income if her grandmother dies in 2016?