Jerry's wife dies in September. His wife had paid $20,000 of premiums on a $150,000 face value whole life insurance policy. Jerry elects to receive the life insurance policy proceeds in 20 annual installments of $10,000. Jerry receives his first $10,000 payment this year. How much of the payment should Jerry report as gross income?
A. $- 0 -
B. $2,500
C. $5,000
D. $7,500
E. $10,000
Answer: B
Business
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