Explain, if $3,500 life insurance proceeds received by L will be included in its gross income or not.

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Novak supply company a newly formed corporation , incurred the following expenditures related to the land , to buildings, and to machinery and equipment. abstract company's fee for title search $1,170 architect's fee $7,133 cash paid for land and dilapidated building thereon $195,750 removal of old building $45,000 LESS: salvage $12,375 $32,625 Interest on short term loans during construction…

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Chapter 5, Problem 5DQ

To determine

Explain, if $3,500 life insurance proceeds received by L will be included in its gross income or not.

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