Tom is 68 years old. His employer pays the premiums for group term life insurance coverage of $110,000. The cost to the company for Tom's coverage is $3,000.
a. If the plan providing this coverage is nondiscriminatory and Tom is not a key employee, how much gross income does Tom have?
b. How does your answer to (a) change if Tom is a key employee?
c. If the plan is discriminatory, but Tom is not a key employee, what is Tom's gross income?
d. How does your answer to (c) change if Tom is a key employee?