David Has Been Diagnosed with Cancer and Is Expected to Live

question 1346

Multiple Choice

David has been diagnosed with cancer and is expected to live less than 18 months. David is covered by a life insurance policy with a $400,000 face amount. David cashes in the policy early under a special option and receives 80% of the face amount or $320,000. In the year of collection, David will report

• A) no income.
• B) $400,000.
• C) $320,000.
• D) $80,000.

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Definitions:

Online Ordering

The process of purchasing goods or services via the Internet, often through vendor websites or applications.

Lack of Experience

The absence of prior exposure or familiarity with specific tasks, situations, or fields of endeavor.

Running

The action or activity of moving swiftly on foot, typically at a speed where both feet are off the ground simultaneously at regular intervals.

Bad Decisions

Choices made that lead to undesirable outcomes due to poor judgment, lack of information, or failure to anticipate consequences.