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:

Outsourcing

Obtaining a good or service from an external supplier, often in international markets.

Make-Or-Buy Decision

The strategic choice between producing a good or service internally or purchasing it from an external supplier.

Operational Risk

A measure of a firm’s inability to document the work remote employees do, describe the different situations they might face, and direct their responses in each scenario.

Outsourcing Vendor

A third-party company that provides services or performs tasks that a company might otherwise have done in-house, often to save costs or access specialized expertise.