Ed, an employee of the National Color Company, suffered a rare disease that was very expensive to treat. The local media ran several stories about Ed’s problem and the family received more than $10,000 in gifts from individuals to help pay the medical bills. Ed’s employer provided hospital and medical insurance for its employees, but the policy did not cover Ed’s illness. Shortly before Ed’s death, his employer paid $50,000 of Ed’s accumulated medical bills. After Ed’s death, his former employer paid Ed’s widow $12,000 in “her time of need.” Ed’s widow also collect $25,000 on a group term insurance policy paid for by Ed’s employer. What are Ed’s and his widow’s gross income?
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