Alfred owned a term life insurance policy at the time he was diagnosed as having a...

Alfred owned a term life insurance policy at the time he was diagnosed as having a terminal illness. After paying $76,700 in premiums, he sold the policy to a company that is authorized by the state of South Carolina to purchase such policies. The company paid Alfred $536,900. When Alfred died 18 months later, the company collected the face amount of the policy, $644,280. Alfred is required to include ______in his gross income as a result of the sale of the policy?

Expert Solution

The gross income as a result of the sale of policy is the amount received by Alfred from the company, which is $536900. The premium paid and maturity value are not cosidered to calculate gross income.

ekkarill92 answered 2 years ago

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