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

Question

Quizplus · Accepted Answer

Employer-paid health insurance coverage, group term life insurance up to $50,000, and disability insurance coverage are not included in gross income. However, the value of the whole life insurance coverage over $50,000 ($100,000 - $50,000 = $50,000) is taxable and must be included in Ben's gross income. Therefore, the total amount Ben must include in his gross income is $5,800 + $7,000 = $10,800.

Ben's Employer Offers Employees the Following Benefits A) $9,400 B) $11,070 C) $10,600 D) $7,000 E) Zero

Ben's Employer Offers Employees the Following Benefits A) $9,400
B) $11,070
C) $10,600
D) $7,000
E) Zero