David Has Been Diagnosed with Cancer and Is Expected to Live

question 51

Multiple Choice

David has been diagnosed with cancer and is expected to live less than 18 months.David is covered by a life insurance policy with a $400,000 face amount.David cashes in the policy early under a special option and receives 80% of the face amount or $320,000.In the year of collection,David will report

• A)no income.
• B)$80,000.
• C)$320,000.
• D)$400,000.

---

Definitions:

Ejaculation

The expulsion of semen from the male reproductive tract as a result of sexual climax.

Sexual Dysfunctions

Disorders related to any phase of the sexual response cycle, impacting sexual desire, arousal, or orgasm.

American Psychiatric Association

A professional organization of psychiatrists aimed at promoting mental health care, education, and research.

Homosexuality

A sexual orientation characterized by romantic or sexual attraction towards individuals of the same sex.