"a key employee policy is taken out by company x on its vice president. ten years later, this employee leaves company x and begins working for company y. if this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? "

John and sue smith are a married couple who file a joint income tax return. they have two children, so they claim a total of 4 exemptions (based on calendar year 2015 tax law, a personal exemption of $4,000 per person or dependent can be deducted from total income). in addition, they have legitimate itemized deductions totaling $25,750. their total income from wages is $237,500. what is the couple’s taxable income? $195,750 $221,500 $229,500 $205,750