Greg Is the Owner and Beneficiary of a $100,000 Policy

question 18

Multiple Choice

Greg is the owner and beneficiary of a $100,000 policy on the life of his mother.Greg gives the policy to his brother,Don.Don subsequently pays premiums of $40,000.Upon his mother's death,how much of the insurance proceeds must Don include in income?

• A)$0
• B)$40,000
• C)$60,000
• D)$100,000

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Definitions:

Overstocked Quantity

This term refers to an excessive amount of inventory beyond what is needed or can be sold, potentially leading to increased carrying costs and reduced efficiency.

Firm's Profits

The earnings of a company after all expenses and taxes have been subtracted from revenue, indicative of financial health and performance.

Lead Times

The time it takes from the initiation of a process until its completion, often used in manufacturing and supply chain management to describe the time from order to delivery.

Supply With Demand

Ensuring that the quantity of goods or services available meets the quantity demanded by consumers.