True or False 1. The proceeds of life insurance received by the heirs of the insured upon his death is excluded in gross income. 2. The amount received in excess of the premium paid in an insurance contract constitutes an item of gross income. 3. Donated income is included in the gross income of the donee. 4. Compensation for injuries and sickness constitutes profit; hence, an inclusion gross income. 5. It is sufficient that the employee rendered more than 10 years of service for his retirement benefit to be exempt.
True or False 1. The proceeds of life insurance received by the heirs of the insured upon his death is excluded in gross income. 2. The amount received in excess of the premium paid in an insurance contract constitutes an item of gross income. 3. Donated income is included in the gross income of the donee. 4. Compensation for injuries and sickness constitutes profit; hence, an inclusion gross income. 5. It is sufficient that the employee rendered more than 10 years of service for his retirement benefit to be exempt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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True or False
1. The proceeds of life insurance received by the heirs of the insured upon
his death is excluded in gross income.
2. The amount received in excess of the premium paid in an insurance contract
constitutes an item of gross income.
3. Donated income is included in the gross income of the donee.
4. Compensation for injuries and sickness constitutes profit; hence, an
inclusion gross income.
5. It is sufficient that the employee rendered more than 10 years of service
for his retirement benefit to be exempt.
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