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9. Corp. A purchases and pays 100% of the premium cost for life insurance on all of its employees. Employee Anne Able, age 56,
9. Corp. A purchases and pays 100% of the premium cost for life insurance on all of its employees. Employee Anne Able, age 56, has a policy providing $45,000 of coverage. Assume that Corp. A pays $120.00 actual premium cost for Anne's policy for the year. Based on the above data, Corp. A will include what amount of additional taxable income on Anne's W-2 for the year? A 10. C D $460 240 210 260 None of the above Two years ago, Ben Baker purchased an annuity contract at a cost of $50,000, all of which he paid at the time of purchase. The annuity pays a benefit of $400 per month. Assume that the expected return for Ben Baker is $70,000 over the life of the annuity. How much income will Ben Baker report as gross income for the current year? A $2,520 B 1,440 C 4,800 DE 3,600 None of the above
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