Liza's employer purchased a disability income policy from an insurance company on behalf of all of its employees. The employer paid for two-thirds of the premiums, and the employees paid for the other one-third. Subsequently, Liza received $3,000 per month for 6 months she was unable to work. Liza will be taxed on
A) $0.
B) $6,000.
C) $12,000.
D) $18,000.
Answer: C
Tax
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- Income in respect of a cash-basis decedent
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