11. If life insurance proceeds are left on deposit with the insurance company and paid over a period of time, part of cash received is a tax-free payment of insurance proceeds and the remainder is gross income to the beneficiary. Mary's taxable portion of the annuity received from the death of her father is determined as follows. Cash received $12,000
Portion representing cost of annuity ($150,000 /	(10,000)
Interest income	$2,000