Question
Comprehensive Problem 5-84 (LO 5-1, LO 5-2, LO 5-3) (Algo) Charlie was hired by Ajax this year as a corporate executive and a member of
Comprehensive Problem 5-84 (LO 5-1, LO 5-2, LO 5-3) (Algo) 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 behalf. Salary payments $ 104,500 Contributions to qualified pension plan 13,800 Qualified health insurance premiums 9,950 Year-end bonus 19,900 Annual directors fee 9,000 Group-term life insurance premiums (face value $40,000) 965 Whole life insurance premiums (face value $100,000) 1,820 Disability insurance premiums (no special elections) 4,850 a. Charlie uses the cash method and calendar year for tax purposes. Calculate Charlies gross income for the current year.
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