Cameron Is the Owner and Beneficiary of a $300,000 Policy

question 43

Multiple Choice

Cameron is the owner and beneficiary of a $300,000 policy on the life of his mother.Cameron sells the policy to his brother,Parker,for $100,000.Parker subsequently pays premiums of $55,000.Upon his mother's death,how much of the insurance proceeds must Parker include in income?

• A)$0
• B)$55,000
• C)$145,000
• D)$300,000

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Definitions:

The Poor

Individuals or groups who lack the financial resources to meet a standard of living considered normal or comfortable in their society.

Social Class Ladder

A system of social stratification based on income, wealth, education, and occupation, which affects individuals' opportunities and social status.

Intersection

A concept often used in sociology to describe the ways in which social categories such as race, gender, and class interact on multiple and often simultaneous levels, contributing to systematic social inequality.

Race And Class

Intersecting social categorizations that significantly impact an individual's life experiences, opportunities, and interactions within societal structures.