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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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