Richard Is a Key Employee of Winn Corporation

question 4

Multiple Choice

Richard is a key employee of Winn Corporation.The corporation provides Richard with $120,000 of group-term life insurance coverage.Only company executives receive life insurance coverage.The premium attributable to the coverage is $1,600.The uniform one-month group-term premium is one dollar per $1,000 of coverage.How much must Richard include in income due to the policy?

• A)$0
• B)$840
• C)$1,440
• D)$1,600

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Definitions:

Cumulative Probability

represents the likelihood of a random variable falling within a specified range, calculated as the sum of probabilities up to a certain point.

Monte Carlo Method

A simulation technique that uses random elements when chance exists in their behaviour.