CPA Exam : Federal Taxation of Individuals
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Example Questions
Example Question #1 : Federal Taxation Of Individuals
Jack Snell named his wife—Angelica—the beneficiary of a 
Cannot be determined
We need to find the amount of the life insurance payments that need to be included in Angelica's gross income. It is important to note that life insurance payments paid by reason of death are excluded from income if they are paid in lump sums or installments. If the payments are received in installments, then then the principle amount of the policy divided by the number of annual payments is excluded each year.
Let's start by calculating the principle amount of the policy to be received every year.
In order to calculate the gross income to be reported, subtract this amount from the annual installment.
Example Question #2 : Cpa
Charlie Smith is filing a joint tax return with his wife. Charlie Smith's employer pays the entire cost of all the employee's group-term life insurance under a qualified plan. Under this plan, which of the following choices identifies the maximum amount of tax-free coverage that may be provided for Mr. Smith by his employer?
Cannot be determined
This question asks us to identify the maximum amount of tax-free group-term life insurance that can be provided to an employee by an employer. The cost of the first 
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