Manuel's Employer Provides Him with $80,000 of Group Term Life

question 36

Multiple Choice

Manuel's employer provides him with $80,000 of group term life insurance coverage for the year at no cost.How much must Manuel include in income as a result of this benefit if he is 40 years old and is not considered a key employee?

• A)0
• B)$3
• C)$8
• D)$36
• E)$96

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Definitions:

Department's Output

The total amount of goods or services produced by a specific department within a given period.

Direct Materials

Components and primary raw inputs used in the creation of a product, identifiable as integral parts of the finished product.

Direct Labor

The wages or expenses incurred for labor that is directly involved in the manufacturing of a product.

Process

A series of actions or steps taken in order to achieve a particular end in business or manufacturing.