21. Lansing Corporation, a publicly heldd company with a 21% tax rate, paid its CEO an annual salary of $2.3 million. Ignoring payroll taxes, calculate the after-tax cost of this payment. A) $2.3 million B) S1.817 million C) $2.09 million D) S0 22. Lawrence is a U.S. citizen who has worked in his employer's Paris office for the past five years. Compute Lawrence's 2018 AGI if his only item of income was his $130,000 salary A. $130,000 B. $104,100 C. $25,900 D. $0 23. Harold Biggs is provided with $200,000 coverage under his employer's group-term life insurance plan. Which of the following statements is true? A. The value of $50,000 coverage is included in Harold's gross income. B. The value of $150,000 coverage is included in Harold's gross income. C. The value of $200,000 coverage is included in Harold's gross income. D. Harold's life insurance coverage is a nontaxable fringe benefit. 24. Six years ago, HOPCO granted Lin Sing an incentive stock option (ISO) to purchase 1,000 shares of HOPCO stock for $55 per share. On date of grant, the market price was $50 per share. This year, Lin Sing exercised the ISO when the market price was $64 per share. How much ordinary income does she recognize because of the exercise? A. S0 B. $5,000 C. $9,000 D. $14,000 25. Jason Inc. maintains a qualified profit-sharing plan for its employees. This year, Jason contributed $2,300 to Ms. Preston's profit-sharing account. Which of the following statements is true? A. Jason can deduct the contribution, and Ms. Preston must include the contribution in her gross income. B. Jason can't deduct the contribution, but Ms. Preston must include the contribution in her gross income. C. Jason can deduct the contribution, but Ms. Preston does not include the contribution in her gross income. D. Jason can't deduct the contribution, and Ms. Preston does not include the contribution in her gross income