Carin, a Widow, Elected to Receive the Proceeds of a $150,000

question 24

Multiple Choice

Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 installments of $17,500 each.Her husband had paid premiums of $60,000 on the policy.In the first year, Carin collected $17,500 from the insurance company.She must include in gross income:

• A)$0.
• B)$2,500.
• C)$10,000.
• D)$25,000.
• E)None of these.

---

Definitions:

Consumption

The use of goods and services by households or individuals, often measured to understand economic activity and trends.

Economically Depleted

A condition where resources, assets, or energy have been consumed to the point of diminishing returns, affecting economic vitality.

Affordable Oil

The availability of oil at a cost that does not adversely affect economic growth and consumer affordability.

Phase In

The gradual integration or implementation of a policy, system, equipment, or procedure over a period of time.