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JDD Corporation provides the , following benefits to its employee, Ahmed (age 47): Salary $320,000, Health...
JDD Corporation provides the , following benefits to its employee, Ahmed (age 47): Salary $320,000, Health isurance $100,000, Dental $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?
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Expert Solution
| Description | Amount | Explanation |
| Taxable Benefits | ||
| (1) Salary | 320,000 | |
| (2)Personal Use of Company Jet | 200,000 | |
| (3)Life Insurance (Taxable Portion) | 270 | (150,000*0.15 cents per thousand*12) |
| (4)Taxable Total | 520,270 | (1)+(2)+(3) |
| (5) Marginal Tax Rate | 30% | |
| (6) Income tax on Benefits | 156,081 | (4)*(5) |
| (7) After Tax benefit of Taxable Items | 364,189 | (4)-(6) |
| Non Taxable Benefits | ||
| (8)Health Insurance | 100,000 | |
| (9) Dental Insurance | 2,000 | |
| (10) Life Insurance Non Taxable portion | 2,730 | (3,000-270) |
| (11)Dependent Care | 5,000 | |
| (12) Professional Dues | 500 | |
|
(13) Non Taxable total |
110,230 | |
| After Tax Benefit of Salary and Benefits | 474,419 | (7)+(13) |
ekkarill92 answered 2 years agoRelated Solutions
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
$280,000
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?
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 $200,000 of coverage for Ahmed. What is the total
amount of taxable wages and benefits?
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$
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Health
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Dental
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2,700
Life
insurance
3,900
Dependent
care
4,700
Professional
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1,460
Personal use of
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279,000
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Dental insurance
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Life insurance
3,000
Dependent care
5,000
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Personal use of company jet
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