Question: Ram Corp.s operating income for the year ended December 31, 2010, amounted to $100,000. Included in Rams 2010 operating expenses is a $6,000 insurance premium

Ram Corp.’s operating income for the year ended December 31, 2010, amounted to $100,000. Included in Ram’s 2010 operating expenses is a $6,000 insurance premium on a policy insuring the life of Ram’s president. Ram is beneficiary of this policy. In Ram’s 2010 tax return, what amount should be deducted for the $6,000 life insurance premium?

a. $6,000

b. $5,000

c. $1,000

d. $0

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