28 LO.2 Determine the gross income of the beneficiaries in the following casess

Question

28 LO.2 Determine the gross income of the beneficiaries in the following casess Justin's employer was downsizing and offered employees an amount equal to one year's salary if the employee would voluntarily retire. Trina contracted a disease and was unable to work for six months. Because df her dire circumstances, her employer paid her one-half of her regular salan while she was away from work. Coral Corporation collected S'1 million on a key person life insurance polis when its chief executive died. The corporation had paid the premiums on policy of $77,000, which were not deductible by the corporation. Juan collected $40,000 on a life insurance policy when his wife, Leona, 2016. The insurance policy was provided by Leona's employer, and the prert ums were excluded from Leona's gross income as group term In 2018, Juan collected the $3,500 accrued salary owed to Leona a of her deatlh a. b. on a key person life insurance polio C. c the d. died in

Explanation / Answer

a)The amount received should be included in the gross income as it increases the wealth
b)The amount received should be included in the gross income since it is income received by the employee
c)The amount received should not be included in the gross income as the amount collected by the company as the beneficiary of the policy
d)The amount received should not be included in the gross income as the amount collected by the company as the beneficiary of the policy. The 3500 should be added for the gross income

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