Which of the Following Would Result in Life Insurance Proceeds

question 93

Multiple Choice

Which of the following would result in life insurance proceeds that are taxable to the recipient?

• A)A life insurance policy transferred to a creditor in payment of a debt
• B)A life insurance policy in which the insured is the daughter of the taxpayer and the beneficiary is the taxpayer
• C)A life insurance policy transferred by a shareholder to a corporation
• D)A life insurance policy purchased by a taxpayer insuring his or her business partner
• E)A life insurance policy purchased by a corporation insuring an officer.

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Definitions:

Departmental Heads

Leaders or managers in charge of specific departments within an organization, responsible for the direction and performance of their areas.

Top Management

The highest level of executives and administrators responsible for setting strategic goals and making critical business decisions for an organization.

Market Value

The current price at which an asset or service can be bought or sold.

Downsizing

Downsizing refers to the reduction of a company's workforce or the scaling back of its operations to decrease expenses and increase efficiency.