Ask Question
29 September, 20:00

Group-Term Life Insurance. (Obj. 2) Paine Distributing pays an annual premium for $90,000 for nondiscriminatory group-term life insurance coverage on its president, Fred J. Noble. Fred is 44 years of age. His wife, Melanie, is the policy's benefi ciary. For this group-term life insurance, Fred pays the company $0.20 per year for each $1,000 of coverage. His share of the insurance premium is deducted from his gross salary under Paine's payroll deduction plan. What portion of the group-term life insurance cost is included in Fred's gross income for the year?

+1
Answers (1)
  1. 29 September, 21:32
    0
    457.2$

    Explanation:

    Fred's age is 44 years, therefore in accordance with IRIS table, cost for each month 1000$ coverage is 0.44$

    Coverage taxable for each month=90000/1000*.44=39.6$

    Coverage taxable for 12 months=39.6*12=475.2$

    Fred already pays = 0.20*90.000/1000=18$

    Amount taxable to be shown as income=475.2-18$ = 457.2$
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Group-Term Life Insurance. (Obj. 2) Paine Distributing pays an annual premium for $90,000 for nondiscriminatory group-term life insurance ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers