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?

Expert Solution

jeff jeffy answered 2 years ago

Ink Inc., a publishing firm, offers its 755 employees a choice of benefits: 314 enrolled in...

Ink Inc., a publishing firm, offers its 755 employees a choice of benefits: 314 enrolled in the firm’s vision plan, 241 enrolled in the firm’s disability insurance, and 225 enrolled in both the vision plan and disability insurance. (a) Draw a Venn Diagram (with probabilities) that illustrates this situation. (b) What is the probability that someone did not enroll in either benefit? (c) Are the events ‘enrolling in the firm’s vision plan’ and ‘enrolling in the firm’s disability insurance’ independent?...

Owen Company forgot to accrue $3,000 of salaries its employees had earned at the end of...

Owen Company forgot to accrue $3,000 of salaries its employees had earned at the end of 2019. It paid and expensed the salaries in 2020. It also, in 2019, recorded $4,000 of sales as an account receivable; however, the sale really did not take place until 2020, and it should have recognized the revenue in 2020. It collected the money from the sale early in 2020. Provide the impact of the errors on the following: Assets as of 12/31/19: $_____________...

A big petroleum company needs to organize the travel of 1600 of its employees and respective...

A big petroleum company needs to organize the travel of 1600 of its employees and respective family’s members and the transportation of 90 tons of baggage from Fiji isle to Morocco. The available airplanes are of two types; 12 airplanes from type A capable to transport 200 travelers and 6 tons of baggage and 9 airplanes from type B capable to transport 100 travelers and 6 tons of baggage. The rental fees for type “A” airplane is 800000 USD and...

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....

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

A company offers health insurance to its employees. The insurance pays continuous premiums at the rate...

A company offers health insurance to its employees. The insurance pays continuous premiums at the rate of $12,000/year whenever the employee is sick, and nothing otherwise. Suppose that a typical employee gets sick on average every 4 months ,and when sick remains so for an average of 1/2-months. The company constructs an appropriate continuous-time Markov chain to model this situation. (a) Suppose an employee is healthy today. Find the total expected benefits that she will receive over the next year.

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

Calculate gross pay for each of the following employees of Launchpad Co. The company offers a...

Calculate gross pay for each of the following employees of Launchpad Co. The company offers a regular wage rate of $8.20/hour to all employees. Under an incentive plan in place for all employees, this rate increases for any employee who can meet weekly production goals. The increased rates and corresponding thresholds that must be met are as follows: $9.40/hour for producing at least 2,000 units $10.60/hour for producing at least 2,800 units $11.80/hour for producing at least 3,700 units $13/hour...

Anderson Construction Company offers dental insurance to its employees. A recent study by the human resource...

Anderson Construction Company offers dental insurance to its employees. A recent study by the human resource director shows the annual cost per employee per year followed the normal probability distribution, with a mean of $1,280 and a standard deviation of $420 per year. What percent of the employees cost Anderson more than $1,500 per year for dental insurance? What percent of the employees cost Anderson between $1,500 and $2,000 per year for dental insurance? What percent of the employees did...

Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of...

Alamar Petroleum Company offers its employees the option of contributing retirement funds up to 5% of their wages or salaries, with the contribution being matched by Alamar. The company also pays 85% of medical and life insurance premiums. Deductions relating to these plans and other payroll information for the first biweekly payroll period of February are listed as follows: Wages and salaries $ 2,900,000 Employee contribution to voluntary retirement plan 93,000 Medical insurance premiums 51,000 Life insurance premiums 9,900...

Question