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Unformatted text preview: al is the beneficiary of this policy) 3,000 Group term insurance premiums paid on $10,000 life insurance policies for
each of Ral's four employees (the employees' spouses are the beneficiaries) 4,000 Amortization of cost of acquiring a perpetual dealer's franchise (Ral paid
$48,000 for this franchise on July 1, 1989, and is amortizing it over a 48-month period) 6,000
Contribution to a recognized, qualified charity (this contribution was authorized
by Ral's board of directors in December 1989, to be paid on January 31, 1990) 75,000 On December 1, 1989, Ral received advance rental of $27,000 from a tenant for a three-year lease
commencing January 1, 1990 to cover rents for the years 1990, 1991, and 1992. In conformity with
GAAP, Ral did not include any part of this rental in its income statement for the year ended December 31,
What amount should Ral deduct for keyman and group life insurance premiums in computing taxable
income for 1989?
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Becker CPA Review, PassMaster Questions
Lecture: Regulation 3 c. $4,000
Choice "c" is correct. Ral should de...
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This note was uploaded on 06/14/2013 for the course ACCOUNTING Regulation taught by Professor Becker during the Fall '10 term at Keller Graduate School of Management.
- Fall '10
- The Land