Brad suffers from congestive heart failure and has been admitted to a nursing home where he is expected to spend the remainder of his life. His doctor has certified him as chronically ill. In 2018, Brad receives $320 per day from his life insurance policy for 100 days ($32,000) as accelerated death benefits. Brad's nursing home care costs $300 per day ($30,000 for the 100 days of care). Brad will be allowed to exclude
A. $32,000.
B. $2,000.
C. $30,000.
D. $0.
Answer: A
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During what year did the IASB and FASB reaffirm their commitment to achieving convergence of accounting standards in the U.S.?
a. 2007 b. 2009 c. 2002 d. 2008
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1. Expected Standard Stock Return Deviation Beta A 10% 20% 1.0 B 10% 10% 1.0 C 12% 12% 1.4 Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT?
A. Portfolio AB's coefficient of variation is greater than 2.0. B. Portfolio AB's required return is greater than the required return on Stock A. C. Portfolio ABC's expected return is 10.66667%. D. Portfolio ABC has a standard deviation of 20%. E. Portfolio AB has a standard deviation of 20%.
Which of the following tests evaluates such factors as entry barriers, supplier bargaining power, and the number of substitute products available?
A. The just-like-me test B. The better-off test C. The attractiveness test D. The cost-of-entry test
Understating assets and revenues is justified based on:
a. realization assumption. b. matching. c. consistency. d. realization. e. None of the answers are correct.