Business, 13.03.2020 21:35 mariobros3090
Stack Inc. owns a $1 million insurance policy on the life of Mary Stack, the corporate CEO. The corporation is the policy beneficiary. Stack's annual premium on the policy is $3,160.
Which of the following statements is true?
A. Stack Inc. can deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will not be taxable income.
B. Stack Inc. can deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will be taxable income.
C. Stack Inc. cannot deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will be taxable income.
D. None of the statements is true
Answers: 1
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Stack Inc. owns a $1 million insurance policy on the life of Mary Stack, the corporate CEO. The corp...
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