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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Definitions:

Members

Individuals or items belonging to a group, set, or category.

Distributions

The way in which values, objects, or events are spread out or dispersed over a range or area.

Members

Individuals or elements that belong to a group, category, or set.

Percentage

A proportion or share in relation to a whole, expressed as a fraction of 100.