Lime Finance Company requires its customers to purchase a credit life insurance policy associated with the loans it makes. Lime is the beneficiary of the policy to the extent of the remaining balance on the loan at the time of the customer's death. In 2010, Lime wrote off as uncollectible a $5,000 account receivable from Wally, which included $1,500 of accrued interest. When Wally died in 2011, the life insurance policy was still in force, and Lime received $3,500. Is the $3,500 of life insurance proceeds received by Lime included in its gross income?