Mario's employer pays the full premium on a disability income policy from an insurance company on behalf of all employees. After a hiking accident, Mario was out of work for two months and collected $2,500 per month ($5,000 total) of disability benefits from this policy. In addition, Mario received another $500 per month ($1,000 total) from a disability policy he had purchased himself. Mario had paid a total of $750 in premiums on his policy. How much of the $6,000 total received is taxable? (LABEL AND SHOWALL WORK WITH CALCULATIONS)

A) $0

B) $1,000

C) $5,000

D) $6,000

Answer rating: 100% (QA)

Answer C 5000 Insurance proceeds or benefits from the insu... View the full answer