Regarding buy-sell agreements

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Reference no: EM131052516

Which of the following statements is true regarding buy-sell agreements?

Select one: a. Premiums for life insurance used to fund a redemption buy-sell agreement are tax-deductible for a corporation, but not for a partnership or an individual

b. In a cross purchase buy-sell agreement, the corporation agrees to purchase the business interest upon the occurrence of the triggering event.

c. If a corporation pays premiums for a policy owned by one shareholder on the life of another shareholder, this payment will likely be considered a dividend.

d. If a shareholder dies, the policies owned by the other shareholders will be included in the decedent's estate for federal estate-tax purposes

Reference no: EM131052516

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