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JDD Corporation provides the following benefits to its employee, Ahmed (age 51); Salary $ 337,00 Health insurance Dental insurance 16,000 1.800 Life insurance 5,100 Dependent

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JDD Corporation provides the following benefits to its employee, Ahmed (age 51); Salary $ 337,00 Health insurance Dental insurance 16,000 1.800 Life insurance 5,100 Dependent care 4,600 Professional dues 660 Personal use of company jet 277,000 The life insurance is a group term life insurance policy that provides $264,000 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 $ 337,000 Salary Personal use of company jet Life insurance (taxable portion) 277,000 Taxable total $ 614,000 % 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 Taxable total $ 614,000 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 $ 0 Nontaxable total After-tax benefit of salary and benefits EA 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 40 to 44 10 45 to 49 15 50 to 54 .23 55 to 59 43 60 to 64 66 65 to 69 1.27 70 and above 2.06 Source: Reg. $1.79-3d) (2)

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