Bret Carries a $200,000 Insurance Policy on His Life and Has

question 73

Multiple Choice

Bret carries a $200,000 insurance policy on his life and has paid premiums of $10,000 over the years.Dividends on the policy have totaled $8,500.Each year Bret has left the dividends with the insurance company.In the current year,the insurance company credited $800 of interest on the accumulated dividends to Bret's account.In addition,$600 of dividends was added by the insurance company.In the current year,Bret must report income of

• A)$0.
• B)$600.
• C)$800.
• D)$1,400.

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Definitions:

Ratified

The process of formally approving or confirming a previous act or decision, making it officially valid.

Disaffirmed

The act of denying, rejecting, or nullifying an agreement or contract, especially by a minor.

Intoxicated People

Individuals under the influence of alcohol or drugs to a degree that impairs their abilities and decision-making capacities.

Disaffirm Agreements

The legal action of renouncing or rejecting a contract or agreement, especially by minors.