Question 1

Rick chose the following fringe benefits under his employer's cafeteria plan.Which of his chosen benefits will be taxable?

Accepted Answer

A)  $150 cash per pay period
B)  medical insurance on his family
C)  dental insurance
D)  group term life insurance of $20,000E) B) and C)
F) A) and B)

Question 2

Cameron is the owner and beneficiary of a $300,000 policy on the life of his mother.Cameron sells the policy to his brother,Parker,for $100,000.Parker subsequently pays premiums of $55,000.Upon his mother's death,how much of the insurance proceeds must Parker include in income?

Accepted Answer

A)  $0
B)  $55,000
C)  $145,000
D)  $300,000E) A) and B)
F) B) and C)

Question 3

Ahmad's employer pays $10,000 in tuition this year for Ahmad to attend a graduate business program.How much of the employer-provided tuition is taxable to Ahmad?

Accepted Answer

A)  $0
B)  $4,750
C)  $5,250
D)  $10,000E) A) and B)
F) B) and C)

Question 4

John,an employee of a manufacturing company,suffered a heart attack and was unable to work for six months.He received $1,500 per month of disability benefits as a result of an employer-provided group policy.The benefits are includible in John's gross income.

Accepted Answer

A) True 
 B)False

Question 5

Loan proceeds are taxable in the year received in cash.

Accepted Answer

A) True 
 B)False

Exam 8: Gross Income: Exclusions

Loan proceeds are taxable in the year received in cash.

Correct Answer
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Cameron is the owner and beneficiary of a $300,000 policy on the life of his mother.Cameron sells the policy to his brother,Parker,for $100,000.Parker subsequently pays premiums of $55,000.Upon his mother's death,how much of the insurance proceeds must Parker include in income?

Correct Answer
verified

John,an employee of a manufacturing company,suffered a heart attack and was unable to work for six months.He received $1,500 per month of disability benefits as a result of an employer-provided group policy.The benefits are includible in John's gross income.

Correct Answer
verified

Ahmad's employer pays $10,000 in tuition this year for Ahmad to attend a graduate business program.How much of the employer-provided tuition is taxable to Ahmad?

Correct Answer
verified

Rick chose the following fringe benefits under his employer's cafeteria plan.Which of his chosen benefits will be taxable?

Correct Answer
verified

Exam 8: Gross Income: Exclusions

Loan proceeds are taxable in the year received in cash.

Correct AnswerverifiedShow Answer

Cameron is the owner and beneficiary of a $300,000 policy on the life of his mother.Cameron sells the policy to his brother,Parker,for $100,000.Parker subsequently pays premiums of $55,000.Upon his mother's death,how much of the insurance proceeds must Parker include in income?

Correct AnswerverifiedShow Answer

John,an employee of a manufacturing company,suffered a heart attack and was unable to work for six months.He received $1,500 per month of disability benefits as a result of an employer-provided group policy.The benefits are includible in John's gross income.

Correct AnswerverifiedShow Answer

Ahmad's employer pays $10,000 in tuition this year for Ahmad to attend a graduate business program.How much of the employer-provided tuition is taxable to Ahmad?

Correct AnswerverifiedShow Answer

Rick chose the following fringe benefits under his employer's cafeteria plan.Which of his chosen benefits will be taxable?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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