Mr. Stark received $25,000 in disability payments while he was recuperating from heart surgery. Mr. Stark, age 65, is an employee with a large corporation providing general business consulting services. The corporation has always paid for the disability insurance of its employees. Mr. Stark telecommutes and works out of the home. From further conversations with the client, you discover that only $10,000 of the disability payments received by Mr. Stark arise from a disability policy paid for by his employer under a group disability policy. The remaining $15,000 was paid on a separate policy that Mr. Stark purchased several years ago. Mr. Stark has been paying semiannual premiums on the separate individual policy. You are asked to prepare Mr. Stark’s return. What are the tax consequences of Mr. Stark receiving the payments discussed above? What are your conclusions and reasoning upon which they are based (cite all work)?