Miranda is not a key employee of AB Corporation. AB provides Miranda with group term life insurance coverage of $140,000. The premiums attributable to the excess coverage are $1,300. The uniform one- month group- term premium is one dollar per $1,000 of coverage. How much must Miranda include in income?

Question

Quizplus · Accepted Answer

The taxable amount is calculated on the excess coverage over $50,000. The excess is $90,000 ($140,000 - $50,000). The monthly cost is $90 ($1 x 90), and annually it is $1,080 ($90 x 12).

Miranda Is Not a Key Employee of AB Corporation