Refer to the facts in Question 82.If C dies 10 months later, how much must VSP include in its gross income assuming it paid additional premiums of $12,000 after purchasing the policy?

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Quizplus · Accepted Answer

VSP must include in its gross income the difference between the death benefits received ($360,000) and the sum of the premiums paid ($312,000). The additional premiums paid after purchasing the policy ($12,000) increase the total premiums paid to $312,000. Therefore, the gross income included is $360,000 - $312,000 = $48,000.

Refer to the Facts in Question 82