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JDD Corporation provides the following benefits to its employee, Ahmed (age 48): #1 Dependent care Professional dues. Personal use of company jet Salary Health

JDD Corporation provides the following benefits to its employee, Ahmed (age 48): Salary Health insurance $326,000 15,000 2,70

Description Amount Taxable benefits $ 326,000 Salary Personal use of company jet 279,000 Life insurance (taxable portion) Tax  

JDD Corporation provides the following benefits to its employee, Ahmed (age 48): #1 Dependent care Professional dues. Personal use of company jet Salary Health insurance. Dental insurance Life insurance. $326,000 15,000 2,700 3,900 4,700 1,460 279,000 Assume the life insurance is a group-term life insurance policy that provides $288,000 of coverage for Ahmed. (Use EXHIBIT 12-8) Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits (ignoring FICA taxes)? (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar.) Description Taxable benefits Salary Personal use of company jet Life insurance (taxable portion) 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 Nontaxable total After-tax benefit of salary and benefits Amount $ 326,000 279,000 $ 605,000 $ $ 0 0 % 5-year Age Bracket Under 25 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 and above Cost per $1,000 of Protection for One Month $0.05 .06 .08 .09 .10 .15 .23 .43 .66 1.27 2.06

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