Which of the following statements applies to purchase and sale contracts? In the case of a purchase and sale contract for the purchase of companies, the life insurance premiums paid by the company are deductible from the company. If the corporation is designated as the owner and irrevocable beneficiary of a life insurance policy used to finance the purchase agreement, the death benefit of the policy is not included in the deceased shareholder`s gross discount. b. In a cross-buy-sell contract, the company undertakes to acquire the commercial participation upon the occurrence of the triggering event. When you are logged into your account, this website remembers the cards you know and what you don`t know, so they are in the same box the next time you log in. Select one: a. Life insurance premiums used to finance a buy-sell contract are tax deductible for a business, but not for a partnership or individual In a cross-purchase-sell contract financed by life insurance, the company takes out life insurance for the life of each owner. d. When a shareholder dies, policies belonging to other shareholders are included in the deceased`s estate for federal estate tax purposes to see how well you know the information, try the quiz or test activity. c. If a corporation pays premiums for a policy that belongs to one shareholder over the life of another shareholder, that payment may be considered a dividend. If you placed seven or more cards in the Don`t know box, click Retry to try those cards again.
Use these flashcards to memorize information. Look at the big map and try to remember what`s on the other side. Then click on the card to return it. If you knew the answer, click the green Knowledge box. Otherwise, click the red Don`t know box. The contract must be financed by property or insurance. If you need a break, try one of the other activities listed under the flashcards, such as Matching, Snowman, or Hungry Bug. Although you feel like you`re playing a game, your brain is always establishing more connections to information to help you. If you accidentally placed the card in the wrong field, simply click on the card to remove it from the box. .
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