Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thirty years ago, mrs. cash purchased an insurance

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

60.1K

Verified Solution

Question

Accounting

image
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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students