1)ABC Corp. purchased group term life insurance for all of itskey employees in the amount of $100,000. The cost of the insuranceis $175 The employer pays all of the premiums. Ben, age 50, is vicepresident and earns an annual salary of $100,000. How much must Benrecognize in income?

2)Don and Carol are married and filed a joint return. During theyear they received the following :

Wages………………………….. $25,000

Social Security Benefits………. 12,000

Tax Exempt interest income…... 10,000

Modified adjusted gross income 35,000

How much of the social security benefits are included inincome?