is taxable? A. Proceeds of life insurance received by heirs B. Excess amount received over premiums paid by insured upon surrender of policy C. Compensation for personal injuries of an employee D. Indemnification for moral dam

is taxable? A. Proceeds of life insurance received by heirs B. Excess amount received over premiums paid by insured upon surrender of policy C. Compensation for personal injuries of an employee D. Indemnification for moral dam

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter10: Managing Property And Liability Risk

Section10.3: Homeowner’s Insurance

Problem 4CC

See similar textbooks

Related questions

Q: Which of the following indemnity or award is gross income? * a. Indemnity received for…

A: Based on above options the correct option is OPTION (A): Indemnity received from insurance…

Q: Under IAS 19 Employee Benefits, how is actuarial gain or loss handled? amount falling outside…

A: IAS 19 deals with the employee benefits. It includes the pension, benefit plans and gratuity etc.

Q: What is meant by a taxpayer's 'preservation age' and a 'condition of release', why are these…

A: Here discuss about some term related with the taxpayers which are important to get avail the…

Q: Statement 1: If an insured outlived his policy and received from the insurance company an amount…

A: Here discuss about the tax burden which are incurred in the insurance policy after the outlive of…

Q: Which of the following factors is least likely to affect the amount of retirement benefits under a…

A: Defined benefit pension plans are the retirement designs that include providing a fixed and…

Q: Question text Under IFRS, which of the following statements is true regarding accounting for defined…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the following terms. Include the definition, how they are calculated, treated in the…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.…

A: Under a non contributory pension or defined benefits plan, only an employer contributes and no…

Q: Sick pay benefits that are related to an employee's services already rendered, whose payment is…

A: Accumulate rights: Accumulate rights refer to those rights which can be carried forward to future…

Q: Which of the following statements regarding asset ceilings for overfunded and underfunded pension…

A: A firm retirement plan with more assets than obligations is known as an overfunded pension plan…

Q: Depending on when an unfunded pension liability is to be paid, it will be classified on the balance…

A: Yes, unfunded pension liability will be classified as a liability on the BS Balance Sheet It is…

Q: . Which of the following is TRUE regarding a whole life insurance policy that pays a dividend?…

A: Please not th at as per the guidelines, I am required to answer only the first three questions.…

Q: Under IFRS, any difference between the pension expense and the payments into the pension fund plan…

A: Pension expense and the contribution to pension fund are recorded through pension liability/asset…

Q: If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary…

A: If the insured outlived the life insurance policy, he/she will get his/her premium back, this…

Q: How should gains or losses related to pension plan assets be recognized? How does this treatment…

Q: Payments by employers of premiums on life insurance for employees are not taxable benefits. Select…

A: Tax deductible Expenses: Expenses that are deductible for tax purposes include those deemed…

Q: These are compensated or paid absences that are carried forward and can be used in future periods…

A: Compensated absences are the leaves and absents of the employees that are being compensated or paid…

Q: Explain the conditions under which the following may be taxable:

A: Tax is the amount which is paid on the taxable portion of the income earned by the person during the…

Q: When an entity amends a pension plan, past service cost should be Recorded in other comprehensive…

A: Under a Pension plan, a regular amount is required to be contributed to a pension account and such…

Q: The following are exclusions from gross income, except Proceeds of life insurance policies.…

A: The income earned by an individual before any deductions and allowances is considered Gross Income.

Q: hange in the benefit plan assets? a.contributions from the employer. b.actual/expected return on…

A: Employees with defined benefit plans receive a fixed, predetermined benefit when they retire. The…

Q: With respect to spousal and child support, which of the following statements is NOT correct. A) Any…

A: SOLUTION- According to the rules on tax treatment of alimony the following statements are not…

Q: Under a noncontributory plan, only the employee makes contributions to the retirement benefit plan.…

A: Introduction:- Non contributory plan is a pension. Noncontributory plans are greater beneficial for…

Q: 2. When two or more policies cover the same loss, the right of the one insurer to call upon the…

A: The following are some of the Principles of Insurance Principle of Contribution Principle…

Q: Indicate whether the following income sources must be included or may be excluded from gross income…

A: Answer: Concept: Any income that are exempted doesn't form the part of gross income.

Q: In a defined-benefit plan, a formula is used that Select one: a. requires that the benefit of gain…

A: A defined benefit plan is the plan which is contributed by the employer on behalf of the employee to…

Q: In case of life insurance policies with profits, policy holders are given the right to participate…

A: Answer

Q: Which of the following is true about plan assets? Any excess return on plan assets are earned to…

A: Plan assets refer to the form of assets that are held onto by the owner for long-term employee…

Q: The following are excluded from gross income, except: a. Proceeds of life insurance policy received…

A: Gross Income Gross income refers to the income of an individual which comprises income from wages…

Q: Under IFRS, which of the following statements is true regarding accounting for defined benefit…

A: defined benefit pension plan means these are post emplment Benifits other then defined contributions…

Q: If an employer contributes to an Health Savings Account (HSA) on behalf of an employee, a. Is the…

A: Generally the contribution made by the employer to the Health Savings Account (HSA) of an employee…

Q: Under PAS 26 (Accounting and Reporting by Retirement Benefit Plans), investments held by retirement…

A: PAS 26 deals with the requirements for the preparation of financial statements of retirement benefit…

Q: Explain the following terms. Include the definition, how they are calculated, treated in the…

A: In addition to salaries, many companies offer other benefits to their employees such as pension…

Q: When are liabilities recognized for the federal Social Security program? Select one: a. When…

A: The Social Security program provides protection against the loss of earnings due to retirement,…

Q: life insurance proceeds paid to a beneficiary because of the insured's death is taxable. true or…

A: False

Q: a. Indicate whether the following income sources must be included or may be excluded from gross…

A: Solution:- Indication of the following income sources must be included or may be excluded from gross…

Q: a "asset gain or loss" in the context of pension accounting? What is the development of a "liability…

A: Plan assets: Assets are created, maintained and planned in a specific purpose. The contribution of…

Q: Which of the following is/are true with regard to accounting for short-term employee benefits?…

A: Short-term employee benefits refer to those employee benefits that are supposed to be sorted out…

Q: The income tax treatment of damages received from personal physical injuries is an application of…

A: Taxable income is the amount of income computed to measure the amount of taxes to be paid to the…

Q: If pension expense recognized in a period exceeds the current amount funded by the employer, what…

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the…

Q: /hich is correct concerning the effect of asset ceiling in a defined enefit plan? O It is the excess…

A: Benifit asset : it recognises an asset measured as the amount of the surplus at the balance sheet…

Q: Identify which one of the following type of life insurance provides a source of regular income to…

A: Life Insurance - It is a contract between insurer and policy holder, in which insurer promises to…

Q: urvivorship

A: A life insurance policy refers to the contract between a person and the insurance company. An…

Q: What method should be used to account for profits or losses associated with pension plan assets?…

A: The Answer

Question

Identify which is taxable?

A. Proceeds of life insurance received by heirs

B. Excess amount received over premiums paid by insured upon surrender of policy

C. Compensation for personal injuries of an employee

D. Indemnification for moral damages

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Which of the following is true about the self-employed health insurance deduction? The deduction can be claimed when a subsidized employer health insurance plan is also available. The deduction can be claimed if the taxpayer has an overall business loss from self-employment. Long-term care premiums may not be deducted within specified dollar limitations based on age. The self-employed health insurance deduction is a for AGI deduction. Dental insurance is not included as deductible self-employed health insurance.
In choosing between taking the standard deduction and itemizing deductions from AGI, what effect, if any, does each of the following have? a. The age of the taxpayer(s). b. The health (i.e., physical condition) of the taxpayer. c. Whether taxpayers rent or own their residence. d. Taxpayers filing status (e.g., single, married, filing jointly). e. Whether married taxpayers decide to file separate returns. f. The taxpayers uninsured personal residence was recently destroyed by a wildfire (the region was declared a disaster area by the Federal government). g. The number of dependents the taxpayer can claim.
Which of the following would not be reported on a plan's statement of fiduciary net position? A.) Obligations to retired employees that are past due B.) Plan investments at fair value C.) Actuarial accrued liabilities D.) Contributions receivable from employers
TRUE OR FALSE If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary less the total amount of premiums paid to the insurer
Which of the following life insurance proceeds is not included in the gross estate of the deceased? A. Insurance proceeds with SSS.B. Insurance proceeds where the beneficiary is a third person revocably appointed.C. Insurance proceeds under a group insurance taken out by the employee for himself as beneficiary.D. Insurance proceeds covering the life of the insured decedent where the estate of the deceased, hisexecutor or administrator is the beneficiary whether or not the insured retained the power of revocation.
Which of the following income is taxable? * A. Proceeds of life insurance policy paid to the heirs or beneficiaries upon the death of the insured. B. Employment gratuities in exchange for services rendered by employees. C. Retirement benefit under RA 7641 D. Gains from the sale of bonds with maturity of more than 5 years
The following are excluded from gross income, except: a. Proceeds of life insurance policy received by the beneficiary upon death of insured b. Compensation for injuries, sickness, or death c. Amount received by the insured in excess of the premiums paid d. None of the above
Define each of the given and describe the different EXCLUSIONS FROM GROSS INCOME: Proceeds of life insurance policy Amount received by the insured as a return of premium Gift, bequest, or descent Compensation for injuries or sickness Income exempt under treaty Retirement benefits, pensions, gratuities, etc.