David Has Been Diagnosed with Cancer and Is Expected to Live

question 51

Multiple Choice

David has been diagnosed with cancer and is expected to live less than 18 months.David is covered by a life insurance policy with a $400,000 face amount.David cashes in the policy early under a special option and receives 80% of the face amount or $320,000.In the year of collection,David will report

• A)no income.
• B)$80,000.
• C)$320,000.
• D)$400,000.

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Definitions:

Application Letter

A written document submitted to an employer by a job applicant, detailing their credentials and interest in an open position.

Solicited Application Letter

A solicited application letter is a job application letter sent in response to an advertised job opening, showing the applicant's qualifications and interest in the position.

Job Ad

A public announcement or posting by an employer seeking to fill a vacant position within their organization.

Job Offer

A formal invitation to become an employee of a company or organization.