David is certified by his doctor as terminally ill with liver disease. His doctor certifies that he cannot reasonably be expected to live for more than a year. He sells his life insurance policy to Viatical Settlements, Inc., for $250,000. He has paid $20,000 so far for the policy.

How much of the $250,000 must David include in his taxtable income?

0$

Explanation:

Life insurance proceeds are not included in gross income based on the premise that it would not be appropriate when the time of need to tax the proceeds from life insurance policy. For this reason, the major exclusion from gross income is been given for life insurance proceeds. To be excluded, the proceeds has to be paid to the beneficiary by reason of the death of the insured. Let's say the proceeds are taken over some years instead of in a lump sum, the insurance company will pay interest on the that proceeds that are not paid.

Taxable income must not include $250,000

Explanation:

Since the life insurance payment is exempt from tax and is the reason why it is excluded from the computation of the gross income for those who are declared terminally ill persons. So $250,000 must not be included in the David's Taxable Income.

the answer is     d. in our global economy, most job growth will be in services, but manufacturing jobs will exist, too.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o