Sam Died on January 15,2006 and Left His Wife,Terry,an Insurance

Sam died on January 15,2006 and left his wife,Terry,an insurance policy with a face value of $100,000.Terry elected to receive the proceeds over a 10-year period ($10,000 plus interest each year) .This year Terry receives $11,500 ($10,000 proceeds plus $1,500 interest) from the insurance company.How much income must Terry report from this payment?

A) $0
B) $500
C) $1,500
D) $11,500
E) None of the above

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free