Question 1 (Chapter 11): How are Social Security benefits taxed?

Question 2 (Chapter 11): Brisco, now deceased, was married for 12 years. He had two dependent children, ages 10 and 12, who are cared for by their mother age 48. His mother, age 75, was his dependent and survived him. At the time of his death, he was currently but not fully insured under Social Security. His dependents are entitled to all of the following benefits except: a. A lump-sum death benefit of $255. b. A childrens benefit equal to 75% of Briscos PIA. c. A caretakers benefit for the childrens mother. d. A parents benefit. Explain how you came to your answer.

Question 3 (Chapter 12): Discuss the funding arrangements available for deferred compensation plans.

Question 4 (Chapter 12): Courtney receives stock options for 12,000 shares of XYZ Corporation with an exercise price of $10 when the stock is trading on the national exchange for $10 per share. The XYZ company plan is an Incentive Stock Option Plan. Which of the following statements are true regarding the options? 1. Courtney will be required to hold any ISOs for more than a year after exercise and more than two years from the grant date to have long-term capital gains. 2. 2,000 of the options are NQSOs. a. 1 only. b. 2 only. c. Both 1 and 2. d. Neither 1 nor 2. Explain how you came to your answer.