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Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received

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Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalt Salary payments Contributions to qualified pension plan Qualified health insurance premiums Year-end bonus Annual director's fee Group-term life insurance premiums (face value $40, eee) Whole life insurance premiums (face value $100,000) Disability insurance premiums (no election to treat as nontaxable benefit) $ 127,5ee 16,300 12,250 24, 460 12,90 1, 220 1,510 4,860 a. Charlie uses the cash method and calendar year for tax purposes Calculate Charlie's gross income for the current year Gross income b. Suppose that Ajax agrees to pay Charlie an additional $166,000 once Charlie completes five years of employment in this agreement alter Charlie's gross income this year relative to your part () answer? O Yes No c. Suppose that in exchange for his promise to remain with the firm for the next four years, Ajax paid Charlie four years of director's fees in advance. Will this arrangement alter Charlie's gross income this year relative to your part (a) answer? Yes O No d. Assume that in lieu of a year-end bonus Ajax transferred 1170 shares of Bell stock to Charlie as compensation. Further assume that the stock wes listed at $58 per share and Charle would sell the shares by year-end, at which time he expected the price to be $63 per share. What would be the value of compensation and gain on sale which would be included in Charlie's gross income? Amount Value of compensation Gain on sale e. Suppose that in lieu of a year-end bonus Ajax made Charlie's house payments (a total of $32,600). What would be the value of house payments which would be included in Charlie's gross income? Gross Income

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