Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided.Donald's employer paid Darlene an amount equal to Donald's three months' salary ($45,600), which is what the employer does for all widows and widowers of deceased employees.Donald had $21,200 in accrued salary that was paid to Darlene.Donald's employer had provided Donald with group term life insurance of $105,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $21,000 had been included in Donald's gross income under § 79.Donald had purchased a life insurance policy (premiums totaled $128,000) that paid $382,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $38,500 each year for a 30-year period. She received her first installment this year.If an amount is zero, enter "0". Round any division to two decimal places. Round your final answers to nearest whole dollar. AmountReceived AmountTaxablea. Employer payments$45,600 $fill in the blank 1b. Accrued salary, earned before death$21,200 $fill in the blank 2c. Group term life insurance proceeds$105,000 $fill in the blank 3d. Life insurance proceeds, annuity$38,500 $fill in the blank 4 Total$fill in the blank 5

Answered: Donald was killed in an accident while…

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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Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided.

Donald's employer paid Darlene an amount equal to Donald's three months' salary ($45,600), which is what the employer does for all widows and widowers of deceased employees.
Donald had $21,200 in accrued salary that was paid to Darlene.
Donald's employer had provided Donald with group term life insurance of $105,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $21,000 had been included in Donald's gross income under § 79.
Donald had purchased a life insurance policy (premiums totaled $128,000) that paid $382,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $38,500 each year for a 30-year period. She received her first installment this year.

If an amount is zero, enter "0". Round any division to two decimal places. Round your final answers to nearest whole dollar.

		Amount Received		Amount Taxable
a.	Employer payments	$45,600		$fill in the blank 1
b.	Accrued salary, earned before death	$21,200		$fill in the blank 2
c.	Group term life insurance proceeds	$105,000		$fill in the blank 3
d.	Life insurance proceeds, annuity	$38,500		$fill in the blank 4
			Total	$fill in the blank 5

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