6) Ron, age 42, works for a company that has a nondiscriminatory group-term life insurance plan for its employees. Under the plan, Ron receives $80,000 of insurance coverage. Ron's share of the group-term life insurance cost for the current year was $27.27. The Uniform Premium Table specifies that the cost for $1,000 of group-term life insurance for one month for a person age 40-44 is $0.10. For this group-term life insurance, Ron's gross income should include:

A) $68.73

B) $61.20

C) $8.73

D) $36.00

E) $0

F) $96.00

7) A corporation provides its employees with health insurance coverage. The premiums for each employee are $10,000 a year. Which of the following statements is correct if the corporation's plan discriminates in favor of its highly paid employees?

A) The highly paid employees will be taxed on the $10,000 of fringe benefits they receive, but the non-highly paid employees will not be taxed on the $10,000.

B) All employees will be taxed on the $10,000 of fringe benefits they receive.

C) The non-highly paid employees will be taxed on the $10,000 of fringe benefits they receive, but the highly paid employees will not be taxed on the $10,000.

D) None of the employees will be taxed on the $10,000 of fringe benefits they receive.

E) The corporation cannot provide health insurance coverage if its plan discriminates in favor of highly paid employees.

8) During the current year, a couple cashes in $10,000 of Series EE savings bonds to help pay the cost of their son's college education. Of this amount, $5,200 represents principal and $4,800 represents interest. They use $7,000 of the proceeds to pay for tuition and the rest to cover their son's room and board. The couple's modified AGI is $137,250. Which of the following statements is true?

A) All of the interest is tax-free.

B) A portion of the interest is taxable, and a portion of the interest is tax-free.

C) All of the interest is taxable.

9) Assuming the five-year waiting period has been met, which of the following withdrawals from a Roth IRA will not avoid the 10% penalty?

A) A withdrawal by a beneficiary after a participant's death.

B) A withdrawal the participant after the participant's disability.

C) A $5,000 withdrawal by the participant to pay first-time homebuyer expenses.

D) All of the above distributions avoid the 10% early withdrawal penalty.

E) None of the above distributions avoid the 10% early withdrawal penalty.

10) A 42-year-old unmarried taxpayer has modified income of $66,300. If the taxpayer contributes to her 401(k) plan at work, what is the maximum amount that the taxpayer can both contribute and be able to deduct to her traditional IRA for 2018?

A) $0

B) $1,820

C) $3,690

D) $1,815

E) $3,685

F) $5,500