Question

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Umeko is employed by XYZ Corporation. XYZ Corporation provides medical and health, disability, and group term life insurance coverage for its employees. Premiums attributable to Umeko were as follows: E (Click the icon to view the premiums attributable to Umeko.) During the year, Umeko suffered a heart attack and subsequently died. Before her death, Umeko collected $12,000 as a reimbursement for medical expenses and $3,500 of disability income. Upon her death, Umeko's husband collected the $42,000 face value of the life insurance policy. Read the requirements. Requirement a. What amount can XYZ Corporation deduct for premiums attributable to Umeko? (Enter a "0" if none of the premiums are deductible.) The premiums attributable to Umeko that XYZ Corporation can deduct is X Х - Requirements Data Table Medical and health $ 3,800 250 a. What amount can XYZ Corporation deduct for premiums attributable to Umeko? b. How much must Umeko include in income relative to the premiums paid? C. How much must Umeko include in income relative to the insurance benefits? d. How much must Umeko's widower include in income? Disability Group term life (face amount is $42,000) 800

Answer 1

Pg0 Answers The amount paid for medical and health = $3,800 The amant paid for disability=+250 The amount paid for group item life = $800 Compute the total amounts de premiums paid Total premiums = medical se health + Disability + Group term lite = $3,800+$250 + $800 =$4850 note that the full amount of premiums paid on Employce. is deductible. There fore, the amount that Xyz corporation deduct for premiums attributable to Umeko is $4,850. C.premiums on medical and health call not be traxed Employee Ageriems on disability will not be faxed to an employe premium on group term life will not be taxed to an employee Therefore, of you should include none ds the premiums in the grass income an to an

© A reimbursement for medical expenses will not be taxco. A reimbursement for disability will be faxed. Therefore, — you should include the $9,500 reimbursement for the disability in the gross income. 9. Life insurance benefits will not be tooced. Therefore, us widower should include none of the lite benefits in the in the gross Insurance gross income