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Mary takes out life insurance on her business partner, Susan, with a death benefit of...

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Accounting

  1. Mary takes out life insurance on her business partner, Susan, with a death benefit of $100,000. Assume that Mary has an insurable interest in Susan's life. Susan dies. Under a settlement option in the policy, Mary can elect to take either $100,000 in a lump sum or 10 annual payments of $13,000, and Mary elects the latter. What income tax results to Mary as she collects each annual payment?

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