Bob Had a Terminal Illness and Realized That He "Can't

question 101

Essay

Bob had a terminal illness and realized that he "can't take it with him." Therefore, he cashed in his insurance policy and received $120,000.He had paid $50,000 in premiums on the policy.He used the money to fulfill his lifelong ambitions of going to the Super Bowl, driving an expensive sports car, and vacationing in Bermuda.
Was Bob's behavior consistent with the Congressional intent in providing the tax exemption he was permitted to use?

---

Definitions:

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, involved in many complex brain functions including memory, attention, perceptual awareness, thought, language, and consciousness.

Somatic Motor Nervous System

A part of the peripheral nervous system that transmits signals from the central nervous system to skeletal muscles, controlling voluntary movements.

Autonomic Nervous System

The part of the nervous system that Controls involuntary actions of the smooth muscles and heart and glands.

Dual Innervation

The characteristic of organs receiving impulses from both sympathetic and parasympathetic nervous systems, allowing for precise control.