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JDD Corporation provides the following benefits to its employee, Ahmed (age 50): begin{tabular}{|l|r|l|} hline multicolumn{2}{|c|}{ Description } & multicolumn{2}{c|}{ Amount } hline Taxable benefits
JDD Corporation provides the following benefits to its employee, Ahmed (age 50):
\begin{tabular}{|l|r|l|} \hline \multicolumn{2}{|c|}{ Description } & \multicolumn{2}{c|}{ Amount } \\ \hline Taxable benefits & $339,000 & \\ \hline Salary & 259,000 & \\ \hline Personal use of company jet & & \\ \hline Life insurance (taxable portion) & & \\ \hline & & \\ \hline & 598,000 & \\ \hline & & % \\ \hline Taxable total & & \\ \hline Marginal tax rate & & \\ \hline Income tax on benefits & & \\ \hline After-tax benefit of taxable items & & \\ \hline Nontaxable benefits & & \\ \hline Health insurance & & \\ \hline Dental insurance & & \\ \hline Life insurance (nontaxable portion) & & \\ \hline Dependent care & & \\ \hline Professional dues & & \\ \hline \end{tabular} \begin{tabular}{|l|ll|} \hline & & \\ \hline & & \\ \hline Nontaxable total & $ & 0 \\ \hline After-tax benefit of salary and benefits & $ & 0 \\ \hline \end{tabular} The life insurance is a group-term life insurance policy that provides $294,000 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 Note: Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollarStep by Step Solution
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