Question

In: Accounting

JDD Corporation provides the following benefits to its employee, Ahmed (age 47): Salary                           &nbsp

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


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