If a corporation collects the policy benefit on a key person life policy, which of the following is correct?

If a corporation collects the policy benefit on a key person life policy, which of the following is correct?


A) Amount received is taxable.

B) Amount received is non-taxable.

C) Amount received is partially taxable.

D) Amount received is subject to exclusionary rule.


Answer: B) Amount received is non-taxable.

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