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Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 installments of $17,500 each.Her husband had paid premiums of $60,000 on the policy.In the first year, Carin collected $17,500 from the insurance company.She must include in gross income:
Compliance
The act of conforming to or following the rules, requests, or orders of others, often to gain approval or avoid conflict.
Scarcity
The economic principle that describes the limited availability of resources compared to the theoretically limitless wants and needs of individuals.
Dissonance
A state of mental conflict or inconsistency, often used to describe the tension arising from holding contradictory beliefs or attitudes.
Normative Influence
The pressure to conform to the expectations or norms of a group, influencing individuals to act in ways that are accepted by their social group.
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