Question
Determine the gross income of the beneficiaries in the following cases: a. Justin's employer was downsizing and offered employees an amount equal to one year's
Determine the gross income of the beneficiaries in the following cases:
a. Justin's employer was downsizing and offered employees an amount equal to one year's salary if the employee would voluntarily retire.
b. Trina contracted a disease and was unable to work for six months. Because of her dire circumstances, her employer paid her one-half of her regular salary while she was away from work.
c. Coral Corporation collected $1 million on a key person life insurance policy when its chief executive died. The corporation had paid the premiums on the policy of $77,000, which were not deductible by the corporation.
d. Juan collected $40,000 on a life insurance policy when his wife, Leona, died in 2014. The insurance policy was provided by Leona's employer, and the premiums were excluded from Leona's gross income as group term life insurance. In 2015, Juan collected the $3,500 accrued salary owed to Leona at the time of her death.
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