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

question 94

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 $350 per day.She will receive $340 per day from a $500,000 life insurance policy as an accelerated death benefit.In 2019,she was in the hospital for 10 days and received $3,400.How much of this amount is taxable?

• A)$0
• B)$500
• C)$100
• D)$3,400

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Definitions:

Cash Concentration Accounts

Bank accounts used by companies to concentrate cash from multiple accounts into one for efficient management and utilization.

Zero-Balance Accounts

Banking accounts that are maintained at a zero balance and have funds automatically transferred from a master account in the exact amount needed for specific transactions.

Average Daily Float

The average amount of uncollected funds represented by checks in the process of clearing, typically used in banking and finance to assess cash management efficiency.

Total Float

The total amount of time that a project task can be delayed without causing a delay to the project's completion date.