еВookProblem 4-38Nontaxable Fringe Benefits (LO. 4)Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annualsalary.Enter in the "Includable Premium" column the base amount upon which the includable premium will be determined. In the "PremiumTaxed" column, enter the amount of premium to be included in Horace's gross income.Note: If required, round your final answers to the nearest cent. If an amount is zero, enter "0".Click here to view the Gross Income from Group Term Life Insurance table.Includable PremiumPremium Taxedа.Horace is 26 and earns $16,000 per year.Horace is 26 and earns $42,000 per year.b.C.Horace is 63 and earns $42,000 per year.d.Horace is 46 and earns $90,000 per year.%24%24%24 Table 4-1Gross Income from Group Term Life Insurancein Excess of $50,000Indudable Income per $1,000Employee's AgeMonthlyAnnuallyUnder 25$.05$ .6025 to 29.06.7230 to 34.08.09.10.9635 to 3940 to 441.081.201.802,765.1645 to 49.1550 to 54.2355 to 594360 to 64.667.9265 to 691.2715.2470 and older2.0624.72O Cengage Leaming

Insurance is a type of security one assures after paying for it on an asset.Its basically consists…

Answered: prace is an employee of Ace Electric…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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