McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 34

Grady is a 45-year-old employee with AMUCK Garbage Corporation.AMUCK pays group-term life insurance premiums for employees, and Grady chose the maximum face amount of $120,000.What amount, if any, of the premium AMUCK paid on his behalf, must Grady include in his gross income for the year? Provide a tax authority to support your answer.