Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review

image text in transcribed

Donald was killed in an accident while he was on the job. Darlene, Donald's wife, received several payments as a result of Donald's death. Review the payments below and then enter the amount to be included in Darlene's gross income in the table provided. a. Donald's employer paid Darlene an amount equal to Donald's three months' salary ($60,000), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $20,000 in accrued salary that was paid to Darlene. C. Donald's employer had provided Donald with group term life insurance of $480,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $12,500 had been included in Donald's gross income under $ 79. d. Donald had purchased a life insurance policy (premiums totaled $250,000) that paid $600,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $30,000 each year for a 25-year period. She received her first installment this year. If an amount is zero, enter "o". Amount Received Amount Taxable a. Employer payments $60,000 60,000 b. Accrued salary, earned before death $20,000 20,000 c. Group term life insurance proceeds $480,000 0 d. Annuity proceeds $30,000 VI Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mergers, Acquisitions and Other Restructuring Activities

Authors: Donald DePamphilis

8th edition

9780128024539, 128013907, 978-0128013908

More Books

Students also viewed these Finance questions