1. 1)Ifagroupterminsuranceplandoesnotdiscriminateinfavorofcertainkeyemployees,howmuchmustthekeyemployeeincludeinincome?

   a.	Theactualpremiumpaidbytheemployer.
   b.	Thelesseroftheactualpremiumpaidortheamountundertheuniformpremiumstable.
   c.	Thegreateroftheactualpremiumpaidortheamountundertheuniformpremiumstable.
   d.	Theamountcalculatedfromtheuniformpremiumstableforcoverageinexcessof$50,000.

2. 2)David pays his ex-wife Susan, $12,000 per year in alimony payments Susan has custody of their son Max. However, when Max, turns 21, marries or dies (whichever happens first), the payments will reduce to $8,000 per year. Which of the following is correct:

3. 	a.	Davidcandeduct$12,000inalimonypaideachyear.
   	b.	Davidcandeduct$8,000inalimonypaideachyear.
   	c.	Davidcandeduct$4,000inalimonypaideachyear.
   	d.	Noneoftheabovearecorrect.

3)In 2010, Jeremiah purchased land for $90,000. In 2016, he received $20,000 from a local cable television company in exchange for Jeremiah allowing the company to run an underground cable across Jeremiah's property. Jeremiah is not required to recognize a $20,000 gain.

1. A)True

2. B)False

4. 4)Edward and Nancy were divorced. Their only marital property was a personal residence with a fair market value of $600,00 and a cost of $400,000. Under the terms of the divorce agreement,Nancy would receive the house andNancy would payEdward $100,000 each year for4 years. If Edward should die, the remaining payment would cease to be made. Edward and Nancy lived apart when the payments were made to Edward. The divorce agreement did not contain the word "alimony".

a.	Nancy is allowed to deduct $100,000 each year for alimony paid.
b.	Edward must recognize a $100,000 ($200,000 - $100,000) gain on the sale of his interest in the house.
c.	Edward does not recognize alimony income of $100,000 each year.
d.	Nancy is not allowed any alimony deductions.

1. 5)Which of the following is not a requirement for alimony deductions under post-1984 decrees and agreements:

a.	The payments must be in cash or other property.
b.	The payor and the payee must not live in the same household at the time of the payments.
c.	The decree must not specify that the payments are not alimony.
d.	The payments must end on the death of the payee.