insurance policy. Read the requirements Requirement a. What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is Data table Medical and health Disability Group term life (face amount is $40,000) $ 3,600 300 200 X

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows:

- Medical and health: $3,600
- Disability: $300
- Group term life (face amount is $40,000): $200

During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy.

**Requirement a:** What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.)

The premiums attributable to Ursula that USA Corporation can deduct is:

---

**Explanation of the Data Table:**

The data table provides a breakdown of insurance premiums paid by USA Corporation for Ursula:

1. **Medical and Health Insurance**: The premium is $3,600.
2. **Disability Insurance**: The premium is $300.
3. **Group Term Life Insurance**: The premium is $200, with a face amount of $40,000.

This table is used to calculate the amount USA Corporation can potentially deduct for these premiums.
Transcribed Image Text:Ursula is employed by USA Corporation. USA Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Ursula were as follows: - Medical and health: $3,600 - Disability: $300 - Group term life (face amount is $40,000): $200 During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disability income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. **Requirement a:** What amount can USA Corporation deduct for premiums attributable to Ursula? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Ursula that USA Corporation can deduct is: --- **Explanation of the Data Table:** The data table provides a breakdown of insurance premiums paid by USA Corporation for Ursula: 1. **Medical and Health Insurance**: The premium is $3,600. 2. **Disability Insurance**: The premium is $300. 3. **Group Term Life Insurance**: The premium is $200, with a face amount of $40,000. This table is used to calculate the amount USA Corporation can potentially deduct for these premiums.
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