Dirk and Diane Davis are both employed solely by XYZ Corporation and each earned $15,000 in wages for 2016. With respect to the following items, what amount should be reported as income in addition to their wages? Explain!

Advance commission for services to be performed in the future $1,500

Payments by XYZ under a qualifi ed plan for dependent care 2,000

Sick pay due to illness paid by insurance company (premiums were paid for by XYZ) 3,000

Cash allowance to pay for meals during working hours 300

Payments by XYZ to a qualifi ed pension plan 1,000

Group-term life insurance paid by XYZ on insurance coverage of $50,000 200