Ben's employer offers employees the following benefits.What amount must Ben include in his gross income?
$\begin{array}{lccc}
\text { Benefit } &\text { Value}\
\text {Health insurance coverage}& \$ 5,800 \
\text {Group term life insurance (\$ 50,000) }&4,270\
\text {Disability insurance coverage (considered purchased by Ben) Whole life}&3,600\
\text {insurance coverage (\$ 100,000)}&7,000
\end{array}$

Question

Ben's employer offers employees the following benefits.What amount must Ben include in his gross income? 
$\begin{array}{lccc}
 \text { Benefit } &\text { Value}\
\text {Health insurance coverage}& \$ 5,800 \
\text {Group term life insurance  (\$ 50,000) }&4,270\
\text {Disability insurance coverage (considered purchased by Ben) Whole life}&3,600\
\text {insurance coverage  (\$ 100,000)}&7,000
\end{array}$

Quizplus · Accepted Answer

Health insurance coverage and group term life insurance up to $50,000 are excluded from gross income. However, any amount paid by Ben for the disability insurance coverage will be excluded from gross income when benefits are received, so he must include in his gross income the amount paid by his employer for the insurance coverage, which is $3,600.
Therefore, the total amount Ben must include in his gross income is $5,800 (health insurance) + $4,270 (group term life insurance) + $3,600 (employer-paid portion of disability insurance coverage) = $10,670. 
Answer choice C is the closest to this amount.

Ben's Employer Offers Employees the Following Benefits A)$9,400 B)$11,070 C)$10,600 D)$7,000 E)Zero - None of These Benefits

Ben's Employer Offers Employees the Following Benefits A)$9,400
B)$11,070
C)$10,600
D)$7,000
E)Zero - None of These Benefits