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XYZ Corporation took out an insurance policy on the life of the executive, appointing the company as the beneficiary, The theory is that the earnings

XYZ Corporation took out an insurance policy on the life of the executive, appointing the company as the beneficiary, The theory is that the earnings of the corporation depend on the performance of its key executive such that he dies, will there be commensurate reduction in the business of the company. The executive died. Is the life insurance proceeds an income to the company? Why?

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