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Thirty years ago, Mrs. Cash purchased an insurance policy on her...

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Accounting

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Thirty years ago, Mrs. Cash purchased an insurance policy on her own life. Mrs. Cash died this year, and the policy paid the $300,000 death benefit to her son Josh. During her life, Mrs. Cash paid total premiums of $71,200 on the policy. Which of the following statements is true? Josh must recognize the $300,000 payment as ordinary income. Josh must recognize $228,800 of the $300,000 payment as capital gain. Josh can exclude the $300,000 payment from gross income. Josh must recognize $228,800 of the $300,000 payment as ordinary income

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