Reference no: EM131575449
Don is the beneficiary of a $50,000 insurance policy on the life of his? mother, AnnaAnna. To? date, Anna has paid premiums of $16,000. What amount of gross income must be reported in each of the following? cases? ?
a. Anna elects to cancel the policy and receives $20,000?, the cash surrender value of the policy.
How much should be included in income, and who should claim it?
b. Anna dies and Don receives the face amount of the? policy, $50,000.
How much should Don include in income?
c. Anna dies and Don elects to receive $15,000 per year for four years.
How much should Don report per year for four years in income?
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