Examlex

Solved

Richard Is a Key Employee of Winn Corporation

question 1118

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?


Definitions:

Equipment Expense

The cost associated with purchasing or maintaining equipment necessary for the operation of a business.

Activity Rate

A ratio used in activity-based costing to allocate costs to products or services based on the number of transactions or events.

Processing Activity

The actions or operations conducted on raw materials to transform them into finished goods in the manufacturing process.

Activity-Based Costing

An approach to costing that pinpoints various activities in a company and distributes each activity's costs to every product and service based on their actual consumption.

Related Questions