Question
In: Accounting
JDD Corporation provides the following benefits to its employee, Ahmed (age 47): Salary  
JDD Corporation provides the following benefits to its employee, Ahmed (age 47):
Salary $310,000
Health insurance: $10,000
Dental insurance: $2,000
Life insurance: $3,000
Dependent care: $5,000
Professional dues: $500
Personal use of company jet: $200,000
Assume the life insurance is a group-term life insurance policy that provides $200,000 of coverage for Ahmed. What is the total amount of taxable wages and benefits?
Solutions
Expert Solution
Solution :-
| Particulars | Amount |
| Salary | $310,000 |
| Personal use of company jet | $200,000 |
| Life Insurance (taxable portion) |
= 150,000 * 0.15 cents per $1,000 * 12 months = [ 150,000 / 1,000 ] * 0.15 * 12 = 150 * 0.15 * 12 = 1,800 * 0.15 = $270 |
| Taxable Total |
= $310,000 + $200,000 + $270 = $510,270 |
ekkarill92 answered 2 years agoRelated Solutions
JDD Corporation provides the following benefits to its employee, Ahmed (age 47): Salary &
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Health
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Dental
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Life
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Dependent
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Professional
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Personal use of company
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Assume the life insurance is a group-term life insurance policy
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