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A grouped plan is an arrangement where an employer agrees to acquire, fund and hold D . I. and C . I. contracts for the
A "grouped" plan is an arrangement where an employer agrees to acquire, fund and hold DI. and CI. contracts for the benefit of two or more of its employees, rather than using a group insurance plan offered by an insurance company. Benefits claimed under the policies are paid directly to the disabled employee.
"Magic Instruments" a corporation established a "grouped" disability plan for its office staff in The plan in turn purchased individual disability income replacement on the lives of each of its employees. With regard to one employee, Tristian, the company paid $ in premiums in The company was able to tax deduct the full $ but Tristian did not have to report a taxable benefit for the premiums paid in In Tristian received $ in income replacement benefits from the plan as he had to be away from work due to an injury while playing hockey.
How much did Tristian have to report as a taxable benefit in
Select one:
a $
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