I ray has an excludable amount of income because of

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I-Ray has an excludable amount of income because of the nature of his employment benefit. II-Ray must include $50,000 in his gross income because that is the value of the insurance benefit. III-Ray must include the cost of the insurance policy in his gross income. IV-If the benefit is only available to "key" employees and Ray is a "key" employee, he may exclude the cost of the premiums paid from his gross income. ** a. Only I is correct. b. Only II is correct. c. Only III is correct.
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d. I and IV are correct. e. II and IV are correct. Question 3 (5 points) Ramona's employer pays 100% of the cost of all employees' group-term life insurance. The life insurance plan is not discriminatory. What is the maximum amount of coverage that can be provided tax-free? a. $ - 0 - b. $ 5,000 c. $ 10,000 ** d. $ 50,000 e. $100,000 Question 4 (5 points) Browne's employer has a qualified pension plan that allows employees to contribute up to 10% of their gross salaries to the plan. The employer matches the contribution at the rate of 50% of the employee's contribution. Browne's current annual salary is $40,000. This is his only source of income. If he contributes the maximum amount to the pension plan, what is Browne's gross income for the current year? ** Question 5 (5 points) Barbara was the legal owner of a $100,000 life insurance policy on herself. Glenna is the stated beneficiary. Shortly before her death, Barbara transfers ownership of the policy to Glenna for $15,000. Glenna makes one premium payment in the amount of $1,000 before Barbara dies. Glenna subsequently receives the $100,000 life insurance proceeds. How much of the $100,000 is taxable to Glenna? ** Save answer Question 6 (5 points) During the current year, Marianne receives the following interest payments: City of Toronto, Ontario Bonds$750 Florida Turnpike Authority 420 Puerto Rico Transportation Authority 630 General Electric Corporate Bonds 850 How much gross income does Marianne have from the interest payments?
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** Question 7 (5 points) Hilda is on a "full ride" tennis scholarship at Western University. Her $12,500 scholarship covers tuition and books ($7,000) and room and board ($5,500). Hilda's gross income is a. $ - 0 - b. $ 2,000 ** c. $ 5,500 d. $ 7,000 e. $12,500 Question 8 (5 points) Julia spends her summers away from college as a forest ranger in a remote area near Mt. McKinley, Alaska. She lives in a remote dormitory where she also receives free meals. The dormitory's location permits rangers to be on call in case of an emergency. I-The value of the lodging is excluded from Julia's gross income. II-The value of the meals is excluded from Julia's gross income. **
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Christopher Reinemann
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