An employee is currently in receipt of taxable income in which of the following circumstances?
- The employer makes an irrevocable, formally funded promise to pay the employee $300 per month for life, beginning at age 65, provided the employee does not terminate service prior to age 65.
- The employer makes an unsecured promise to pay the employer $500 per month beginning at age 65.
- The employee is given an irrevocable right to $10,000 per year at age 67 to be paid out of the corporation’s cash flow.
- The employer buys an ordinary life policy and assigns it irrevocably to the employee for the purpose of providing the employee $200 per month after age 65.