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back. He was unable to work for six montns. Tlle u per month during the time he was unable to work. d. Steve fell and

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back. He was unable to work for six montns. Tlle u per month during the time he was unable to work. d. Steve fell and injured his knee. He was unable to work for four months. His e e. Ted suffered a stroke. He was unable to work for five months. medical and health, disability, and group term life insurance coverage for its employes financed disability income policy paid Steve $1,600 per month during the time he w unable to work. His employer contin work. to pay Ted his salary of $1,700 per month during the time he was unable to w 4-43 Employee Benefits. Ursula is employed by USA Corporation. USA Corporation provids Premiums attributable to Ursula were as follows: Medical and health Disability Group term life (face amount is $40,000) $3,600 300 200 During the year, Ursula suffered a heart attack and subsequently died. Before her death, Ursula collected $14,000 as a reimbursement for medical expenses and $5,000 of disabil ity income. Upon her death, Ursula's husband collected the $40,000 face value of the life insurance policy. a. What amount can USA Corporation deduct for premiums attributable to Ursula? b. How much must Ursula include in income relative to the premiums paid? c. How much must Ursula include in income relative to the insurance benefits? d. How much must Ursula's widower include in income? 4-44Group Term Life Insurance. Data Corporation has four employees and provides group term life insurance coverage for all four employees. Coverage is nondiscriminatory and is as follows: Emplovee Ag Key Employee Coverage Actual $200,000 40,000 80,000 40,000 es $4,000 700 Cindy Damitria33 300 a. How much may Data Corporation deduct for group term life insurance premiums? b. How much income must be reported by each employee? Life Insurance Proceeds. 1:4-45 L oe is the beneficiary of a life insurance l

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