Data Corporation has four employees and provides group term life insurance coverage for all four employees. Coverage
Question:
Data Corporation has four employees and provides group term life insurance coverage for all four employees. Coverage is nondiscriminatory and is as follows:
Employee | Age | Key Employee | Coverage | Actual Premiums |
Andy | 62 | yes | $200,000 | $4000 |
Bob | 52 | yes | 40,000 | 700 |
Cindy | 33 | no | 80,000 | 600 |
Damitria | 33 | no | 40,000 | 300 |
a. How much may Data Corporation deduct for group term life insurance premiums?
b. How much income must be reported by each employee?
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Federal Taxation 2018 Comprehensive
ISBN: 9780134532387
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
Question Posted: