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Accurate Data Inc. pays $5,000 a year in premiums for a disability insurance policy covering its senior vice president, David Mills. If David later becomes disabled and receives the monthly benefits under the policy:
A) Accurate Data cannot take a tax deduction for the premiums paid.
B) David must pay income and FICA tax on the benefits received.
C) Accurate Data must pay the income and FICA tax on the benefits received.
D) David will not have to pay income and FICA tax on the benefits received.
Answer: B
The above question Accurate Data Inc. pays $5,000 a year in premiums for a disability insurance policy covering its senior vice president, David Mills. If David later becomes disabled and receives the monthly benefits under the policy:, Was part of Insurance MCQs & Answers. I hope you got the correct answer to your question. Have a great time ahead.
