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JDD Corporation provides the following benefits to its employee, Ahmed (age 26): Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use
JDD Corporation provides the following benefits to its employee, Ahmed (age 26): Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet $ 323,000 12,500 3,900 5,400 4,400 1,380 278,000 The life insurance is a group-term life insurance policy that provides $226,000 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 Taxable total Marginal tax rate % Income tax on benefits After-tax benefit of taxable items Nontaxable benefits Description Amount Taxable benefits Taxable total Marginal tax rate 96 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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