Green,Inc. ,provides group term life insurance for all of its employees.The coverage equals twice the employee's annual salary.Sam,a vice-president,worked all year for Green,Inc.and received $200,000 of coverage for the year at a cost to Green of $2,800.The Uniform Premiums (based on Sam's age)are $.30 per month for $1,000 of protection.How much must Sam include in gross income this year?

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The taxable amount is calculated by subtracting the cost of $50,000 of coverage (which is tax-free) from the total coverage, then applying the uniform premium rate. Sam's coverage is $200,000, so $150,000 is taxable. The monthly cost for $1,000 of coverage is $0.30, so for $150,000, it's $0.30 * 150 = $45 per month. Annually, this is $45 * 12 = $540.

Green,Inc ,Provides Group Term Life Insurance for All of Its