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.Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is * O Exempt from income tax O Taxable to the extent of 100,000 O Taxable in full O Taxable to the extent of 400,000

.Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is * O Exempt from income tax O Taxable to the extent of 100,000 O Taxable in full O Taxable to the extent of 400,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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.Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is * O Exempt from income tax O Taxable to the extent of 100,000 O Taxable in full O Taxable to the extent of 400,000
Transcribed Image Text:.Mrs. A took out a life insurance policy for 500,000 naming her son as beneficiary. Under the terms of the policy, the insurer, Filipinas Insurance Corporation will pay Mrs. A the amount of 500,000 after the 25th year of the policy, or her beneficiary should she die before that date. Mrs. A outlived the policy and received the proceeds. The premium paid on the policy was 400,000. The proceeds from the life insurance policy of Mrs. A is * O Exempt from income tax O Taxable to the extent of 100,000 O Taxable in full O Taxable to the extent of 400,000
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