Homework Clinic
Social Science Clinic => Accounting => Topic started by: vicotolentino on Sep 13, 2020
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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
◦ no income.
◦ $80,000.
◦ $320,000.
◦ $400,000.
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no income.