: Fred Corp. is in its first year of operation. The company has pretax financial income of $650,000. The company has the following items recorded in its records. No estimated tax payments were made during 2020. Proceeds of life insurance for its key officers 1,000,000 Tax depreciation in excess of book depreciation 11,000 Hazardous waste dumping fine 8,800 Warranty expense 5,000 Actual warranty repairs 6,500 Bad debt expense 3,000 Beginning balance in allowances for uncollectible accounts 1,000 End balance in allowances for uncollectible accounts 1,250 Tax rates for 2020 and future years 20%

PLEASE EXPLAIN THE WORK WHEN PROCEEDS OF LIFE INSURANCE IS 1,000,000!!!