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Carol, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of
Carol, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of $18,000 each. Her husband had paid premiums of $60,000 on the policy. Over the life of the installment contract, Carol must include in gross income (taxable amount):
$80,000
$180,000
$0
$120,000
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