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5. Corp. A purchases and pays 100% of the premium cost for group term life insurance on all of its employees. Employee Darla Davis,

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5. Corp. A purchases and pays 100% of the premium cost for group term life insurance on all of its employees. Employee Darla Davis, age 46, has a policy providing $64,000 of coverage. Assume that Corp. A pays $270.00 actual premium cost for Darla's policy for the year. Based on the above data, Corp. A will include what amount of additional taxable income on Darla's W-2 for the year? A $270 6. B 30 C 140 D 0 E None of the above Which of the listed statements is correct? A B C Nontaxable stock dividends are distributions made by a corporation consisting of the capital stock of another corporation In computing basis for each new block of stock received as result of a nontaxable dividend, it is immaterial whether the stock received is identical or not to the old stock If a stock dividend is taxable, the basis of the old stock will not change

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