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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
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.) Answer is complete but not entirely correct. Amount Description Taxable benefits Salary Personal use of company jet Life insurance (taxable portion) $ 394,000 277,000 270 Taxable total $ 671,270 32% Marginal tax rate Income tax on benefits $ 201,381 $ 469,889 After-tax benefit of taxable items Answer is complete but not entirely correct. Amount Description Taxable benefits Salary Personal use of company jet Life insurance (taxable portion) $ 394,000 277,000 270 % $ 671,270 32 $ 201,381 $ 469,889 Taxable total Marginal tax rate Income tax on benefits After-tax benefit of taxable items Nontaxable benefits Health insurance Dental insurance Life insurance (nontaxable portion) Dependent care Professional dues $ 18,600 3,300 5,430 4,900 850 $ 33,080 Nontaxable total After-tax benefit of salary and benefits $ 502,969
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