Accountingplease provide explanationAlice, a widow, elected to receive the proceedsof a $70,000 face value life insurance policy onthe life of herdeceased husband in 10 annual installments of$8,000 each beginning in 20X4. Of the $8,000received in20X4, the amount not subject to income tax is:a. $1.000B.$7,000C.$8,000d. $0e. None of the answers provided is correct.

Tax refers to the mandatory charge levied on the money or income gained by an entity.

Answered: Alice, a widow, elected to receive t of…

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Accounting

Alice, a widow, elected to receive t of a $70,000 face value life insurar the life of her

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 1BCRQ

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Question

Accounting
please provide explanation
Alice, a widow, elected to receive the proceeds
of a $70,000 face value life insurance policy on
the life of her
deceased husband in 10 annual installments of
$8,000 each beginning in 20X4. Of the $8,000
received in
20X4, the amount not subject to income tax is:
a. $1.000
B.$7,000
C.$8,000
d. $0
e. None of the answers provided is correct.

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