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: (Click the icon to view the premiums attributable to Ursula.) 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. 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.) $ 4,100 The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) The amount that Ursula must include in income relative to the premiums paid is $ Requirement c. How much must Ursula include in income relative to the insurance benefits? (Enter a "0" of none of the insurance benefits are to be included in income.) Ursula must report income of She must report this income
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: (Click the icon to view the premiums attributable to Ursula.) 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. 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.) $ 4,100 The premiums attributable to Ursula that USA Corporation can deduct is Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.) The amount that Ursula must include in income relative to the premiums paid is $ Requirement c. How much must Ursula include in income relative to the insurance benefits? (Enter a "0" of none of the insurance benefits are to be included in income.) Ursula must report income of She must report this income
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 37P
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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:
(Click the icon to view the premiums attributable to Ursula.)
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.
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
Requirement b. How much must Ursula include in income relative to the premiums paid? (Enter a "0" if none of the premiums paid should be included in income.)
0
$4,100
Ursula must report income of
She must report this income
C
$
The amount that Ursula must include in income relative to the premiums paid is
Requirement c. How much must Ursula include in income relative to the insurance benefits? (Enter a "0" of none of the insurance benefits are to be included in income.)
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