In: Accounting
Dirk and Diane Davis are both employed solely by XYZ Corp. and each earned $15,000 in wages for 2018. With respect to the following items, what amount should be reported as income in addition to their wages :
Advanced commission for services to be performed in the future-1,500 Payments by XYZ under a qualified plan for dependent care-2,000, Sick pay due to illness paid by insurance company-3,000, cash allownace to pay for meals during work-300, Payements by XYZ to a qualified pension plan-1,000, Group-term life insurance paid by XYZ on insurance coverage of $50,000- 200
$4,800 should be reported as income by Dirk and Diane computed as follows:
PARTICULARS | AMOUNT(IN $) |
Advance commission | 1,500 |
Sick pay | 3000 |
Cash allowance for meals | 300 |
Taxable income | 4,800 |