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Albert had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor.
Albert had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life,
according to his doctor. Albert had a life insurance policy with a face amount of $ He had paid $ of premiums on the
policy. The insurance company has offered to pay him $ to cancel the policy, although its cash surrender value was only
$ He accepted the $ Albert used $ to pay his medical expenses. Albert made a miraculous recovery and lived
another years. As a result of cashing in the policy:
Albert must recognize of gross income.
Albert is not required to recognize any gross income because of his terminal illness.
Albert must recognize $ of gross income, but he has $ of deductible medical expenses.
Albert must recognize of gross income.
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