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:

Environmental Performance

A measure of how well an organization or activity minimizes its impact on the environment, often evaluated against specific standards or regulations.

Regulatory Compliance

involves adhering to laws, regulations, guidelines, and specifications relevant to a business or activity.

Health And Safety

The discipline and practices aimed at minimizing health hazards and ensuring a safe environment for workers in the workplace.

Planned Organizational Change

A deliberate effort to modify procedures, policies, or the structure of an organization to achieve improved effectiveness.