Carin, a Widow, Elected to Receive the Proceeds of a $150,000

question 45

Multiple Choice

Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 installments of $17,500 each.Her husband had paid premiums of $60,000 on the policy. In the first year, Carin collected $17,500 from the insurance company.She must include in gross income:

• A)$0.
• B)$2,500.
• C)$10,000.
• D)$25,000.
• E)None of the above.

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Definitions:

Sensory Sequence

The order in which sensory information is processed or experienced, often relevant in understanding learning and perception.

Associative Strength

The measure of how strongly two ideas or stimuli are linked in the mind.

Bright Blue Light

Light within a specific wavelength range of the visible spectrum, known to influence circadian rhythms and alertness.

Dull Light Blue Light

A specific shade of blue light that is dimmed or less intense, sometimes used in therapies or studies focused on the effects of light color on mood and cognition.