ABC Corp took two keymen insurance on the life of its President, Mr. X. In one policy, the beneficiary is the corporation to compensate it for its expected loss in case of death of its president. The...

#5 PLEASE ANSWER

Extracted text: ABC Corp took two keymen insurance on the life of its President, Mr. X. In one policy, the beneficiary is the corporation to compensate it for its expected loss in case of death of its president. The other policy designates Mr. X's wife as its irrevocable beneficiary. Q1: Are the insurance premiums paid by X corp in both policies deductible? Q2: Will the insurance proceeds be treated as income subject to tax by the corp and by the wife? O Yes, Yes O No, No O Yes, No O No, Yes