Stack Inc. owns a $1 million insurance policy on the life of Mary Stack, the corporate CEO. The corporation is the policy beneficiary. Stack's annual premium on the policy is $3,160.

Which of the following statements is true?

A. Stack Inc. can deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will not be taxable income.

B. Stack Inc. can deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will be taxable income.

C. Stack Inc. cannot deduct the annual premium as a business expense. If Stack ever collects the $1 million death benefit, the benefit will be taxable income.

D. None of the statements is true

Select the word from the list that best fits the definition sometimes

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.