Carmin Kovach is single and has two children from her previous marriage. Anika, 9, lives with Carmin. Julius, 11, lives with his father, Ray. Carmin pays alimony of $400 per month to Ray. The payments are to continue until Julius reaches age 18, when they will be reduced to $100.

Carmin is 34 and employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). Her annual salary is $80,000, and ASCI has an extensive fringe benefits program for its employees.

ASCI has a qualified pension plan that covers all employees. Under the plan, ASCI matches any contribution to the plan up to 8% of the employees annual salary. Carmin makes the maximum allowable contribution of $6,400, and it is matched by ASCI.

ASCI provides medical coverage to all employees but not to their dependents. Carmins medical coverage costs ASCI $3,000 during the current year. She receives $980 in reimbursements for her medical costs. ASCI also provides employees with a flexible benefits plan. Carmin pays $3,200 into the plan. She uses $2,400 to purchase medical coverage for Anika. Her medical, dental, and optometry costs not covered by insurance total $1,900; the flexible benefits plan reimburses her $800 for these costs.

ASCI also provides employees with group term life insurance of twice their annual salary, up to a maximum coverage of $150,000. Carmins group term life insurance premiums cost $400. Because of the sensitive and sometimes dangerous nature of her work, ASCI also provides Carmin with a $300,000 whole life insurance policy. The whole life insurance policy costs $490.

Taking advantage of ASCIs educational assistance program, during the fall Carmin enrolls in two law school classes at a local university. ASCI pays her tuition, fees, books, and other course-related costs totaling $2,300.

Carmin also receives certain other fringe benefits not available to all employees. She receives free parking in the companys security garage that would normally cost $250 per month. In addition, ASCI pays the $1,000 cost of her nuclear engineer