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In 2020, US Sys Corporation Received $269,000 in Death Benefits

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Essay

In 2020, US Sys Corporation received $269,000 in death benefits after its CEO (a key employee)died (it included this amount in book income). For book purposes, US Sys also expensed life insurance premiums for other key employees in the amount of $39,000. In addition, for book purposes, it expensed $29,000 of business meals expenditures. What is the total book-tax difference associated with these items? Is it favorable or unfavorable? What amount of the book-tax difference is temporary and what amount is permanent?


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