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Question - Data Corporation has four employees and provides group term life insurance coverage for all four employees. Coverage is nondiscriminatory and is as follows:
Employee
Age
Key Employee
Coverage
Actual Premiums
Andy
62
yes
$200,000
$4,000
Bob
52
40,000
700
Cindy
33
no
80,000
600
Damitria
300
a. How much may Data Corporation deduct for group term life insurance premiums?
b. How much income must be reported by each employer?
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