1) ABC Corp. purchased group term life insurance for all of its key employees in the amount of $100,000. The cost of the insurance is $175 The employer pays all of the premiums. Ben, age 50, is vice president and earns an annual salary of $100,000. How much must Ben recognize in income?

2) Don and Carol are married and filed a joint return. During the year they received the following:

Wages……........……………………..   $25,000

Social Security Benefits……….      12,000

Tax Exempt interest income…...     10,000

Modified adjusted gross income     35,000

How much of the social security benefits are included in income?
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Answer rating: 100% (QA)

1 Since the amount of coverage is equal to the employees annual salary Since the employer als... View the full answer