Alice, a widow, elected to receive t of a $70,000 face value life insurar the life of her

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter28: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 1BCRQ
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Accounting
please provide explanation
Alice, a widow, elected to receive the proceeds
of a $70,000 face value life insurance policy on
the life of her
deceased husband in 10 annual installments of
$8,000 each beginning in 20X4. Of the $8,000
received in
20X4, the amount not subject to income tax is:
a. $1.000
B.$7,000
C.$8,000
d. $0
e. None of the answers provided is correct.
Transcribed Image Text:Accounting please provide explanation Alice, a widow, elected to receive the proceeds of a $70,000 face value life insurance policy on the life of her deceased husband in 10 annual installments of $8,000 each beginning in 20X4. Of the $8,000 received in 20X4, the amount not subject to income tax is: a. $1.000 B.$7,000 C.$8,000 d. $0 e. None of the answers provided is correct.
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