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Agatha suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life.

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Agatha suffered a severe stroke and has been admitted to a private hospital where she is expected to remain for the rest of her life. She is certified by a licensed health care practitioner as being a "chronically ill individual" Her hospital expenses amount to $250 per day. She will receive $260 per day from a $500,000 life insurance policy as an accelerated death benefit. In 2021, she was in the hospital for 10 days and received $2,600. How much of this amount is taxable? $2,500 $0 $2,600 $100

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