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:

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Undervalued

Describes a security or asset selling for less than its intrinsic or true value, indicating a potential investment opportunity.

Consolidated Buildings

Buildings that are combined under a single ownership or management, potentially for accounting or operational efficiency reasons in real estate or corporate structures.

Trademark

A distinguishable symbol, pattern, or phrase that differentiates the goods or services of a specific origin from those of other sources.