Michael participates in the group insurance plan offered by his employer. He contributes $162 throughpayroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of whichthe employer pays 70% (.e.. $378). The employer adds a taxable benefit to Michael's annual income.On his death, what amount will Michael's estate receive?Select one:a. $45.000b. $13.500C. $24,750d. $31.500

Life insurance is quite necessary in today's life due to risk involved in the life of a person and…

Michael participates in the group insurance plan offered by his employer. He contributes $162 throug payroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of whi the employer pays 70% (.e., $378). The employer adds a taxable benefit to Michael's annual income. On his death, what amount will Michael's estate receive? Select one: a. $45.000 b. $13.500 c. $24,750 d. $31.500

Michael participates in the group insurance plan offered by his employer. He contributes $162 throug payroll deduction. His tax rate is 45%. The annual premium for $45,000 of life insurance is $540, of whi the employer pays 70% (.e., $378). The employer adds a taxable benefit to Michael's annual income. On his death, what amount will Michael's estate receive? Select one: a. $45.000 b. $13.500 c. $24,750 d. $31.500

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 22CE: Ellie purchases an insurance policy on her life and names her brother, Jason, as the beneficiary....

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