Vidyalelo
Commerce · Q570

Insurance

Graduate and Post Graduate · Commerce · question 570

Q570

In a keyman’s policy

A.
The premium paid by the employer is treated as an allowable business expense
B.
In a death claim the policy money is payable to the company
C.
Death claim proceeds are treated as taxable income of the employer
D.
All of the above
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
In a keyman’s policy the premium paid by the employer is treated as an allowable business expense, in a death claim the policy money is payable to the company and death claim proceeds are treated as taxable income of the employer.