Gargoyle Inc. purchased a life insurance policy on its top four executive officers and continues to pay

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Gargoyle Inc. purchased a life insurance policy on its top four executive officers and continues to pay the premiums on these policies. In August, Gargoyle’s CFO died, and the company received $1,000,000 in life insurance proceeds. How much should Gargoyle Inc include in income? How much does the CFO include in income?

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