Shackelton was earning $75,000 per year. He had been with that employer for five years. At that time, he had purchased a disability income policy which would pay him a monthly benefit of $3,750 (60% of his income) show become disabled. He lost his job due to the pandemic and is now working for another employer at a reduced in $60,000. Should he now become disabled, what would be his maximum monthly benefit? Select one: a. $3,750. b. $3,000. c. $3,375. d. $2,250.
Shackelton was earning $75,000 per year. He had been with that employer for five years. At that time, he had purchased a disability income policy which would pay him a monthly benefit of $3,750 (60% of his income) show become disabled. He lost his job due to the pandemic and is now working for another employer at a reduced in $60,000. Should he now become disabled, what would be his maximum monthly benefit? Select one: a. $3,750. b. $3,000. c. $3,375. d. $2,250.
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:Shackelton was earning $75,000 per year. He had been with that employer for five years. At that time, he had
purchased a disability income policy which would pay him a monthly benefit of $3,750 (60% of his income) should he
become disabled. He lost his job due to the pandemic and is now working for another employer at a reduced income of
$60,000. Should he now become disabled, what would be his maximum monthly benefit?
Select one:
a. $3,750.
b. $3,000.
c. $3,375.
d. $2,250.
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