Gary Cashed in an Insurance Policy on His Life

question 19

True/False

Gary cashed in an insurance policy on his life.He needed the funds to pay for his terminally ill wife's medical expenses.He had paid $12,000 in premiums and he collected $30,000 from the insurance company.Gary is not required to include the gain of $18,000 ($30,000 - $12,000) in gross income.

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Definitions:

F-ratio

The ratio of variance between groups to the variance within groups in an ANOVA test, used to determine if there are any significant differences between group means.

Denominator

The bottom part of a fraction that indicates into how many parts the whole is divided.

Numerator

The top number in a fraction that shows how many parts of a whole are being considered or used.

F-ratios

A statistical measure used in the analysis of variance, indicating the ratio of between-group variance to within-group variance.