Carin, a widow, elected to receive the proceeds of a $150,000 life insurance policy on the life of her deceased husband in 10 installments of $17,500 each. her husband had paid premiums of $60,000 on the policy. in the first year, carin collected $17,500 from the insurance company. she must include in gross income:
a.$0.
b.$2,500.
c.$2,000.
d.$25,000.
e. none of the above.

The correct answer to the following question is option B) $2500 .

Explanation:

Given information -

Proceeds to be received on life insurance - $150,000

Carin receives 10 installments of $17,500 each , which takes total amount to - $175,000

Premiums paid by Carins husband - $60,000

Carin collected - $17,500 from insurance company

The interest element that would be included in her gross income -

$175,000 - $150,000

= $25,000

She is receiving payments in form of annuity, and the amount that should be included in her gross income in the first year should -

$25,000 / $175,000  x  $17,500

= $2500

3rd the reason why is because of management and leadership

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!