Question 1 Kevin, a single taxpayer, made payments of $6,000 for a life insurance policy that has a face amount of $10,000 on the life of Linda. After some time, Kevin transferred this life insurance policy to Melissa for $8,000. Linda died and following her death, Melissa received the proceeds from life insurance policy of $10,000 in 2021. At the same time, Melissa's daughter Naomi received a $10,000 scholarship for the 2021-2022 academic year. Naomi's expenditures for tuition, books, and supplies were $3,000 in 2021 and $4,000 in 2022. How much (if any) can Melissa exclude from her gross income in 2021, and how much should Naomi include in her gross income in 2021? O $8,000; $0 O $6,000; $4,000 O $8,000; $3,000 O $10,000; $3,000 O $6,000; $0

Question 1 Kevin, a single taxpayer, made payments of $6,000 for a life insurance policy that has a face amount of $10,000 on the life of Linda. After some time, Kevin transferred this life insurance policy to Melissa for $8,000. Linda died and following her death, Melissa received the proceeds from life insurance policy of $10,000 in 2021. At the same time, Melissa's daughter Naomi received a $10,000 scholarship for the 2021-2022 academic year. Naomi's expenditures for tuition, books, and supplies were $3,000 in 2021 and $4,000 in 2022. How much (if any) can Melissa exclude from her gross income in 2021, and how much should Naomi include in her gross income in 2021? O $8,000; $0 O $6,000; $4,000 O $8,000; $3,000 O $10,000; $3,000 O $6,000; $0

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 24CE

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