John Hoover, age 35, has $70,000 of protection under his employer's group term life insurance plan, for which he makes a monthly contribution of $1.50. His wife is named as beneficiary. The actual cost to the employer for his protection is $0.20 per month per $1,000 of insurance, and the uniform premium for group term insurance under the Internal Revenue Code is $0.09 per month per $1,000 of insurance. Under Sec. 79, what is the annual amount that Hoover, who is not a key employee, must report for federal income tax purposes because of his group term insurance protection?A. $3.60 B. $30.00 C. $21.60 D. $57.60

here we calculate what is the annual amount for given by following method as below;

$1.50. His wife is named as beneficiary. The act cost to the employer for his protection is $.20 p month per $1,000 of insurance, and the uniforn premium for group term insurance under the Internal Revenue Code is $.09 per month per

$1.50. His wife is named as beneficiary. The act cost to the employer for his protection is $.20 p month per $1,000 of insurance, and the uniforn premium for group term insurance under the Internal Revenue Code is $.09 per month per

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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