Life insurance proceeds. Joe is the beneficiary of a life insurance policy taken

Question

Life insurance proceeds. Joe is the beneficiary of a life insurance policy taken out by his father several years ago. Joe%u2019s father died this year and Joe has the option of receiving $100,000 cash or electing to receive $14,000 per year for the remainder of his life. Joe is now 65. Joe%u2019s father paid $32,000 in premiums over the years.

a. how much must Joe include in gross income this year if he elects to accept the $100,000 face amount?

b. how much must be included in Joe%u2019s gross income this year if he elects to receive installment payments?

Explanation / Answer

a)$0

b)$4,000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.