Question

Under a $150,000 insurance policy on her deceased father's life, May Green is to receive $12,000 per year for 15 years. Of the $12,000 received in the current year, the amount subject to income tax is:

Answer 1

Answer:

$0

Explanation:

As we know that the life insurance proceeds would be recieved by the beneficary on the insured person death is tax free

Since the amount of $12,000 would be received by May Green on her insured father so this amount would be tax free

Therefore the amount that subjected to income tax is $0