Greg Is the Owner and Beneficiary of a $100,000 Policy

question 18

Multiple Choice

Greg is the owner and beneficiary of a $100,000 policy on the life of his mother.Greg gives the policy to his brother,Don.Don subsequently pays premiums of $40,000.Upon his mother's death,how much of the insurance proceeds must Don include in income?

• A)$0
• B)$40,000
• C)$60,000
• D)$100,000

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