Maria has spent over $100,000 on medical bills and a nurse aid who lives in her house. She has been chronically ill for several months. She owns a $1,000,000 life insurance policy. Due to her chronic illness, Maria expects to have an additional $600,000 in medical bills in the current year. She has asked that the life insurance policy pay the $1,000,000 to her now. If Maria receives $1,000,000, how much can she exclude from her income? OA) $700,000 OB) $0 OC) $100,000 OD) $1,000,000
Maria has spent over $100,000 on medical bills and a nurse aid who lives in her house. She has been chronically ill for several months. She owns a $1,000,000 life insurance policy. Due to her chronic illness, Maria expects to have an additional $600,000 in medical bills in the current year. She has asked that the life insurance policy pay the $1,000,000 to her now. If Maria receives $1,000,000, how much can she exclude from her income? OA) $700,000 OB) $0 OC) $100,000 OD) $1,000,000
Chapter2: Gross Income And Exclusions
Section: Chapter Questions
Problem 16P
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Question
![Maria has spent over $100,000 on medical bills and a nurse aid who lives in her
house. She has been chronically ill for several months. She owns a $1,000,000 life
insurance policy. Due to her chronic illness, Maria expects to have an additional
$600,000 in medical bills in the current year. She has asked that the life insurance
policy pay the $1,000,000 to her now. If Maria receives $1,000,000, how much can
she exclude from her income?
OA) $700,000
OB) $0
OC) $100,000
OD) $1,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3c3484f-05b4-417e-96dc-e0a3873c7d92%2F31169e59-f848-40be-8b8b-a9158ef107f4%2Fc98xp8a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Maria has spent over $100,000 on medical bills and a nurse aid who lives in her
house. She has been chronically ill for several months. She owns a $1,000,000 life
insurance policy. Due to her chronic illness, Maria expects to have an additional
$600,000 in medical bills in the current year. She has asked that the life insurance
policy pay the $1,000,000 to her now. If Maria receives $1,000,000, how much can
she exclude from her income?
OA) $700,000
OB) $0
OC) $100,000
OD) $1,000,000
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