Question
JDD Corporation provides the following benefits to its employee, Ahmed (age 50): Salary $ 339,000 Health insurance 14,700 Dental insurance 2,100 Life insurance 3,900 Dependent
JDD Corporation provides the following benefits to its employee, Ahmed (age 50):
| Salary | $ 339,000 |
|---|---|
| Health insurance | 14,700 |
| Dental insurance | 2,100 |
| Life insurance | 3,900 |
| Dependent care | 4,200 |
| Professional dues | 1,310 |
| Personal use of company jet | 259,000 |
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 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 | ||
| Salary | $339,000 | |
| Personal use of company jet | 259,000 | |
| Life insurance (taxable portion) | ||
| Taxable total | $598,000 | |
| Marginal tax rate | 30 | % |
| Income tax on benefits | ||
| After-tax benefit of taxable items | ||
| Nontaxable benefits | ||
| Nontaxable total | ||
| After-tax benefit of salary and benefits | ||
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
