JDD Corporation provides the following benefits to its employee, Ahmed (age 48): Description Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet Amount $ 344,000 13,700 4,200 3,600 4,400 520 227,000 The life insurance is a group-term life insurance policy that provides $273,000 of coverage for Ahmed. Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits? (Use EXHIBIT 12-8.) Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar. Description Taxable benefits Amount Salary Personal use of company jet Life insurance (taxable portion) $ 344,000 227,000 Taxable total Marginal tax rate Income tax on benefits After-tax benefit of taxable items Nontaxable benefits $ 571,000 32 %

JDD Corporation provides the following benefits to its employee, Ahmed (age 48): Description Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet Amount $ 344,000 13,700 4,200 3,600 4,400 520 227,000 The life insurance is a group-term life insurance policy that provides $273,000 of coverage for Ahmed. Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits? (Use EXHIBIT 12-8.) Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar. Description Taxable benefits Amount Salary Personal use of company jet Life insurance (taxable portion) $ 344,000 227,000 Taxable total Marginal tax rate Income tax on benefits After-tax benefit of taxable items Nontaxable benefits $ 571,000 32 %

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 2BCRQ

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