Don driller is provided with 100000 of group term

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3. Don Driller is provided with $100,000 of group-term life insurance by his employer. Based on the IRS uniform premium cost table, the total annual cost of a policy of this type is $9.00 per $1,000 of coverage. Don's required contribution to the cost of the policy is $2.00 per $1,000 of coverage per year. Don was covered for the full 12 months of 2019. How much of the cost must Don include in his income? a) $250 b) $390 c) $630 d) $840 e) None of the above. TALITA
FEDERAL INCOME TAX MIDTERM FALL 2020 Name: __________________________________________________________ 1 . Sharon made a $60,000 interest-free loan to her son, Todd, to start a new busi QeVV. TRdd¶V only sources of income were $25,000 from the business and $490 of interest on his checking account. The Applicable Federal interest rate (AFR) was 5%. Based on the above information: STASSI
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2 Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($600 per year), or two years in advance ($960). In September 2018, the company collected the following amounts applicable to future services: October 2018-September 2020 services (200 two-year contracts) $192,000 October 2018-September 2019 services (200 one-year contracts) 120,000 Total $312,000 As a result of the above, Orange Cable should report as gross income for 2019:
3. Peggy is an executive for the Tan Furniture Manufacturing Company. Peggy purchased furniture from the company for $9,500, the price Tan ordinarily would charge a wholesaler for the same items. The retail price of the furniture ZaV $12,500, aQd TaQ¶V cRVW ZaV $9,000. AOO employees are allowed to buy furniture at a discounted price comparable to that charged to Peggy. Pegg\¶V gross income from the above is:
FEDERAL INCOME TAX MIDTERM FALL 2020 Name: __________________________________________________________ 1. Employees of the Valley Country Club are allowed to use the golf course without charge before and after working hours on Mondays. Tom, an employee of the country club played 40 rounds of golf during the year at no charge. The fee for the public is $20 per round. a) Tom must include $800 in gross income. b) Tom is not required to include anything in gross income because it is a de minimis fringe benefit. c) Tom is not required to include the $800 in gross income because the use of the course was a gift. d) Tom is not required to include anything in gross income because this is a “no additional-cost service´ fringe benefit. e) None of the above -
7 2 . Juan owns land that serves as security for a $60,000 mortgage. Juan is personally liable for the mortgage. His basis in the land is $20,000 and the fair market value is $50,000. The bank

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