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Please only answer the parts marked with a red x Thank you! Problem 5-40 (Algorithmic) (LO. 2) Diana spent the last 95 days of 2020
Please only answer the parts marked with a red "x" Thank you!
Problem 5-40 (Algorithmic) (LO. 2) Diana spent the last 95 days of 2020 in a nursing home. The cost of the services provided to her was $33,250 ($350 per day). Medicare paid $10,000 toward the cost of her stay. Diana also received $14,000 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is $380. If the amount is zero, enter 0. What is the effect on Diana's gross income? The amount of her exclusion is $ 23,250 X and the amount included in her gross income is $ 0 Problem 5-31 (Algorithmic) (LO. 2) 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 ($49,000), which is what the employer does for all widows and widowers of deceased employees. b. Donald had $8,600 in accrued salary that was paid to Darlene. c. Donald's employer had provided Donald with group term life insurance of $300,000, which was payable to his widow in a lump sum. Premiums on this policy totaling $17,100 had been included in Donald's gross income under 79. d. Donald had purchased a life insurance policy (premiums totaled $124,000) that paid $340,000 in the event of accidental death. The proceeds were payable to Darlene, who elected to receive installment payments as an annuity of $31,000 each year for a 25-year period. She received her first installment this year. If an amount is zero, enter "0". Round any division to two decimal places. Round your final answers to nearest whole dollar. Amount Received Amount Taxable a. Employer payments $49,000 49,000 b. Accrued salary, earned before death $8,600 $ 8,600 C. Group term life insurance proceeds $300,000 $ 0 d. Life insurance proceeds, annuity $31,000 $ 775,000 x Total 73,600 X
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