Greg Is the Owner and Beneficiary of a $100,000 Policy

question 1126

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) $60,000
• B) $100,000
• C) $40,000
• D) $0

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Definitions:

Temporal-Based Suggestion

Recommendations or advice given that are influenced by or specifically relevant to time-based factors or periods.

Implies

Suggests or indicates something without expressing it directly, often used to convey underlying meanings or intentions.

Logical Reasoning

The process of using a rational, systematic series of steps based on sound mathematical procedures and given statements to arrive at a conclusion.

Presentation Constructed

A prepared display or lecture aimed at informing or persuading an audience, meticulously organized beforehand.