Julia Suffered a Severe Stroke and Has Been Admitted to a Private

question 36

Multiple Choice

Julia suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life.She is certified by a licensed health care practitioner as being a "chronically ill individual." Her hospital expenses amount to $300 per day.She will receive $290 per day from a $500,000 life insurance policy as an accelerated death benefit.In 2016,she was in the hospital for 10 days and received $2,900.How much of this amount is taxable?

• A)$0
• B)$500
• C)$100
• D)$2,900

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Definitions:

Redemption Program

A redemption program is a scheme where points, coupons, or other types of credit are exchanged for goods, services, or a monetary reward.

Unredeemed Containers

Items such as bottles or cans that are not returned for a deposit, often creating recycling or waste management challenges.

Fee Increase

An adjustment that results in the rise of charges or fees for services or goods.

Social Discount Rate

The rate used to convert future costs and benefits to their present value in order to make decisions regarding public projects.