Question

On March 19, 2015, Karen dies and leaves Larry an insurance policy with a face value of $100,000. Karen is Larry's sister, and Larry elects to take the proceeds over 10 years ($10,000 plus interest each year). This year Larry receives $13,250 from the insurance company. How much income must Larry report for the current year?

Answer 1

$3,250

Step-by-step explanation:

Calculation to determine How much income must Larry report for the current year

Current year income=$13,250-$10,000

Current year income=$3,250

Therefore How much income must Larry report for the current year is $3,250