able.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
Transcribed Image Text:Statement 1:If an insured outlived his policy and receives from the insurance
company an amount equivalent to the total premiums paid, such amount is
taxable.
Statement 2: If the insured dies and the beneficiary receives payment from the
insurance company, the amount received in excess of the total premiums paid shall
be taxable.
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