Julia Suffered a Severe Stroke and Has Been Admitted to a Private

question 58

Multiple Choice

Julia suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life.She is certified by a licensed health care practitioner as being a "chronically ill individual." Her hospital expenses amount to $280 per day.She will receive $270 per day from a $500,000 life insurance policy as an accelerated death benefit.In 2013,she was in the hospital for 10 days and received $2,700.How much of this amount is taxable?

• A)$0
• B)$250
• C)$2,000
• D)$2,250

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Definitions:

Erosion

The process by which natural forces remove soils, rocks, or dissolved material from one location and transport it to another.

Igneous Rock

Rock formed through the cooling and solidification of magma or lava, with diverse types such as basalt and granite.

Metamorphosed

The process through which rocks undergo physical and chemical changes under high temperature and pressure conditions, forming metamorphic rocks.

Magma

Hot molten or semi-fluid rock located beneath the Earth's surface, which can erupt through volcanoes.