Statement 1: Proceeds of life
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Statement 1: Proceeds of life
insurance received by the beneficiary
of the insured is a return on capital.
Statement 2: The excess of proceeds
over total premiums paid which is
received by the beneficiary of the
insured decedent is gross income and
is taxable. *
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
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