Which of the following statements regarding executive bonus plans is NOT correct?
A) The bonus is included in the employee's gross income.
B) The employer may alternatively use the bonus to pay the premiums on a life insurance policy covering the employee's life.
C) An executive bonus plan is a nonqualified employee benefit arrangement in which an employer pays a bonus to a particular employee.
D) The employer becomes the policyowner of the insurance policy."
Ans: D) The employer becomes the policyowner of the insurance policy."
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