Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows:

Benefit________________________________________________________ Cost

Health insurance-single .................................................................... $ 5,000

Health insurance--with spouse ........................................................ $ 8,000

Health insurance--with spouse and dependents ......................... $11,000

Dental and vision ................................................................................$ 1,500

Dependent care--any specified amount up to $5,000......................Variable

Adoption benefits--any specified amount up to $5,000 ....................Variable

Educational benefits--any specified amount (no limit) .....................Variable

401(k)--any specified amount up to $10,000.......................................Variable

Cash-- any specified amount up to $15,000 plan benefit ..................Variable

For each of the following independent circumstances, determine the amount of income Matt must recognize and the amount of deduction Fresh may claim (ignore FICA taxes):

a. Matt selects the single health insurance and places $10,000 in his 401(k).

b. Matt selects the single health insurance, is reimbursed $5,000 for MBA tuition, and takes the remainder in cash.

c. Matt selects the single health insurance and is reimbursed for MBA tuition of $10,000.

d. Matt gets married and selects the health insurance with his spouse and takes the rest in cash to help pay for the wedding.

e. Matt elects to take all cash.