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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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01:57:15 Remaining
Multiple Choice
Mr. B insured his life with his
children as beneficiaries. He
died after paying P400,000
premiums. His children collected
the P2,000,000 life insurance
proceeds.
How much will be excluded from
Mr. B's gross income?
zero
P400,000
P1,600,000
P2,000,000
35 of 60"
Transcribed Image Text:GE. 10:13 O O 3
01:57:15 Remaining
Multiple Choice
Mr. B insured his life with his
children as beneficiaries. He
died after paying P400,000
premiums. His children collected
the P2,000,000 life insurance
proceeds.
How much will be excluded from
Mr. B's gross income?
zero
P400,000
P1,600,000
P2,000,000
35 of 60
Expert Solution
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- 3arrow_forward7 Martha has a gross income of $63,822. She can make adjustments of $10,884 for business losses, $3,672 for business expenses, and $2,983 for contributions to her retirement plan. What is Martha's adjusted gross income?arrow_forwardAssume Darrin transfers ownership of the life insurance policy on his life to an Irrevocable Life Insurance Trust (ILIT) and retains the right to borrow against the policy. Assume Darrin dies five years later. Which of the following is correct regarding the treatment of the proceeds of the life insurance policy? O The proceeds will always be included in Darrin's federal gross estate. The proceeds will be included in Darrin's federal gross estate if he has any outstanding loans against the life insurance policy. O The proceeds will be included in Darrin's federal gross estate if Darrin continued paying the policy premiums after the life insurance policy was transferred to the ILIT. O The proceeds will never be included in Darrin's federal gross estate.arrow_forward
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- Val died on May 13, 2021. On July 3, 2018, she gave a $400,000 lite insurance policy on her own lite to son Ray. Because the value of the policy was rela- tively low, the transter did not cause any gift tax to be payable. a. What amount was included in Val's gross estate as a result of the 2018 gift? 6. What amount was included in Val's gross estate if the property given was land instead of a life insurance policy? C. Refer to Part a. What amount would have been included in Val's gross estate if she instead gave Ray the policy on April 30, 2017?arrow_forwardIf we assume that Ben's taxable income is $465,000 before taking his capital transactions into account, and he recognized a $44,000 long-term capital gain, a $12,000 short-term capital gain, and a $10,000 long-term capital loss what is his total 2022 income and Medicare contribution tax.arrow_forward
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