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could you please show work. Thank you. JDD Corporation provides the following benefits to its employee, Ahmed (age 37): Salary Health insurance Dental insurance Life
could you please show work. Thank you.
JDD Corporation provides the following benefits to its employee, Ahmed (age 37): Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet $394,000 18,600 3,300 5,700 4,900 850 277,000 The life insurance is a group-term life insurance policy that provides $214,000 of coverage for Ahmed. Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits? (Use EXHIBIT 12-8.) (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar.) Description Amount Taxable benefits $ 394,000 Salary Personal use of company jet Life insurance (taxable portion) 277,000 Taxable total $ 671,000 Marginal tax rate 32% Income tax on benefits After-tax benefit of taxable items Nontaxable benefits Health insurance Nontaxable total $ O After-tax benefit of salary and benefits $ 0 EXHIBIT 12-8 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection Table Summary: Chart shows cost per $1,000 of life insurance protection for one month per 5-year age bracket. 5-Year Age Bracket Cost per $1,000 of Protection for One Month Under 25 $0.05 25 to 29 .06 30 to 34 .08 35 to 39 .09 .10 40 to 44 45 to 49 .15 50 to 54 .23 55 to 59 .43 60 to 64 .66 65 to 69 1.27 2.06 70 and above Source: Reg. $1.79-3(d)(2)Step by Step Solution
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