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Leland pays premiums of $5,000 for an insurance policy in the face amount of $25,000...

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Accounting

Leland pays premiums of $5,000 for an insurance policy in the face amount of $25,000 upon the life of Caleb and subsequently transfers the policy to Tyler for $7,500. Over the years, Tyler pays subsequent premiums of $1,500 on the policy. Upon Caleb's death, Tyler receives the proceeds of $25,000.
As a result, she is required to include $ in her gross income.

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