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

Grasp the concept of a holder in due course and the protections it affords.

Comprehend the role and implications of bearers and payees in the context of negotiable instruments.

Recognize the conditions under which a party can become a holder in due course.

Understand the legal defenses against claims made by holders in due course.

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Definitions:

Operating Cost

Expenses associated with the day-to-day functions of a business, excluding costs tied to the production of goods or services.

Useful Life

The estimated duration over which an asset is expected to be functional and economically viable for its intended purpose.

Selling Price

The actual amount charged to customers for a product or service, determined by considering production costs, market demand, competition, and profit margin.

Value-based Pricing

Pricing strategy based on the perceived value of a product or service to the customer rather than its cost of production.