Question

In: Accounting

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits....

Tanya's employer offers a cafeteria plan that allows employees to choose among a number of benefits. Each employee is allowed $6,000 in benefits. For 2019, Tanya selected $3,420 ($285 per month) of parking, $1,780 in 401(k) contributions, and $800 of cash. How much must Tanya include in taxable income?

a. $0

b. $1,040

c. $3,420

d. $4,220

Solutions

Expert Solution

Parking benefits (285 - 265)*12 months 240
Cash 800
Amount to be included in Taxable income 1040

* Qualified transportation fringe benefit limit for 2019 is $265 per month

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Ben's employer offers employees the following benefits. What amount must Ben include in his gross income?...
Ben's employer offers employees the following benefits. What amount must Ben include in his gross income? Benefit Value Health insurance coverage $ 5,800 Group term life insurance (Policy $50,000) 4,270 Disability insurance coverage (considered purchased by Ben) 3,600 Whole life insurance coverage (Policy $100,000) 7,000 A. $11,070 B. $9,400 C. Zero - none of these benefit is included in gross income. D. $10,600 E. $7,000
Your employer offers a number of benefits including retirement savings. Five percent of your annual salary...
Your employer offers a number of benefits including retirement savings. Five percent of your annual salary will go towards your retirement fund and the employer will match that amount. Your retirement fund offers three different packages: 1. Invest in T-Bills 2. Invest in small cap stocks 3. Invest in the large cap stocks Discuss the risk-return profile of each option. Which one would you choose?
The employer will contract with an insurer to provide employees with coverage for various benefits that...
The employer will contract with an insurer to provide employees with coverage for various benefits that may include:
Your company offers a retirement plan administered by Forever Investments. The plan allows you to invest...
Your company offers a retirement plan administered by Forever Investments. The plan allows you to invest in a variety of mutual funds, including Forever’s Growth fund (FG for short), Forever’s Value fund (FV), and Forever SnP 500 Index Fund (FSI). FSI is an ‘index’ fund that simply tries to match the performance of the S&P 500 index. Suppose you have data about each fund’s monthly returns during the last 20 years. Explain briefly (max a paragraph, with 3 sentences) how...
Your employer offers a 401(k) plan with a 45% match, and you set a goal of...
Your employer offers a 401(k) plan with a 45% match, and you set a goal of retiring in 25 years with an amount of money which has the same buying power that 1.4 million dollars has today. If the account earns an annual interest rate of 4.2% and the expected annual rate of inflation is 1.3%, how much should you contribute each month? Round your answer to the nearest dollar.
Your company offers a denied-benefit pension plan to each of its employees. The plan will make...
Your company offers a denied-benefit pension plan to each of its employees. The plan will make a monthly payment to each retiree of $4 thousand, next month. In each subsequent month, the payment will grow by an annualized rate of 2% to adjust for inflation. There are currently 100 retirees, and you estimate that this number will remain the same, indefinitely. The government mandates that (i) pension liabilities must be discounted at an annualized rate of 4%, and (ii) pension...
A company offers the following benefits to its employees. A nontaxable travel allowance of $3,000 or...
A company offers the following benefits to its employees. A nontaxable travel allowance of $3,000 or a taxable education contribution of $3,800. If you are one of the employees and your tax rate is 25%, which benefit option will you choose?
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that...
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2016, is shown here: CITY...
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that...
The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2016, is shown here: City...
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses...
Springfield Company offers a bonus plan to its employees and the amount of the employee bonuses for the current year is estimated to be $966,000 to be paid during January of the following year. The journal entry on December 31 to record the bonuses is: Debit Estimated Bonus Payable $966,000; credit Cash $966,000. Debit Employee Bonus Expense $966,000; credit Prepaid Employee Bonus $966,000. Debit Employee Bonus Expense $966,000; credit Bonus Payable $966,000. Debit Unearned Bonuses $966,000; credit Bonus Payable $966,000....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT