Question

Judy is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Judy's employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is excluded from Judy's gross income on an annual basis? PLEASE SHOW WORK.

Name: judy is covered by a 200000 group term life insurance policy of which her daughter is the sole beneficiary judys employer pays the entire premium for the policy for which the uniform annual 67256
Uploaded: 2023-06-15T22:16:37-08:00
Duration: 2 min 2 s
Channel: Supreeta N
Description: judy is covered by a 200000 group term life insurance policy of which her daughter is the sole beneficiary judys employer pays the entire premium for the policy for which the uniform annual 67256

          Judy is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Judy's employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is excluded from Judy's gross income on an annual basis? PLEASE SHOW WORK.

Added by Javier A.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

06/15/2023

Step 1

To determine the monthly coverage amount, we divide the face amount by 12 (months in a year): $200,000 ÷ 12 = $16,666.67 Show more…

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Judy is covered by a $200,000 group-term life insurance policy of which her daughter is the sole beneficiary. Judy's employer pays the entire premium for the policy, for which the uniform annual premium is $0.75 per $1,000 per month of coverage. How much, if any, of the cost of the group-term life insurance is excluded from Judy's gross income on an annual basis? PLEASE SHOW WORK.