Life insurance policy, Ira Munro owns a life insurance

Life insurance policy

Assignment Help Financial Management

Reference no: EM131865195

Ira Munro owns a life insurance policy that will pay $750,000 to his granddaughter Ginnie upon Ira’s death. To date, Ira has paid $69,200 total premiums on the policy, which has a current cash surrender value of $82,500.

A. Assume that Ira dies and Ginnie receives a $750,000 payment from the insurance company. How much of the payment does Ginnie include in her gross income?

B. Assume that Ira liquidates the policy for its cash surrender value and receives an $82,500 payment from the insurance company. How much of the payment does Ira include in his gross income?

Reference no: EM131865195

Questions Cloud

Differences between a strategic and operational plan : What are the key differences between a strategic and operational plan? Explain.

Importance of being a member of a cross-functional : Evaluate the importance of being a member of a cross-functional team to a future leader. Provide a rationale for your response.

What role do these individuals play in success : What role do these individuals play in success? Analyze how technology might be used to facilitate the transfer of training

Find information about at least one actual expert system : Find information about at least one actual expert system that is available for use in this field. Share your findings in a 2-page report.

Life insurance policy : Ira Munro owns a life insurance policy that will pay $750,000 to his granddaughter Ginnie upon Ira’s death.

Differences in the approaches and the solutions : Then describe a situation in which you solved a complex problem. What are the similarities and differences in the approaches and the solutions?

What are the first order conditions in this case : Suppose a central bank cares about inflation and output such that it minimizes a loss function: What are the first order conditions in this case

Compare and contrast mondragon and scanlon plans : Compare and contrast Mondragon and Scanlon Plans. Which one is better? Which one is more effective?

Explain how it differs from federal individual income tax : Write a short paragraph about the Flat Tax and explain how it differs from federal individual income tax.

User Account

All Pages