Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?...

Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?

Benefit	Value
Health insurance coverage	$	5,800
Group term life insurance (Policy $50,000)		4,270
Disability insurance coverage (considered purchased by Ben)		3,600
Whole life insurance coverage (Policy $100,000)		7,000

	A.	$11,070
	B.	$9,400
	C.	Zero - none of these benefit is included in gross income.
	D.	$10,600
	E.	$7,000

Expert Solution

The correct answer is option (D) i.e. $10,600

Only Whole life insurance coverage (Policy $100,000) of $7,000 and Disability insurance coverage (considered purchased by Ben) will be included in gross income of Ben

ekkarill92 answered 2 years ago

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