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JDD Corporation provides the following benefits to its employee, Ahmed (age 57): Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use
JDD Corporation provides the following benefits to its employee, Ahmed (age 57): Salary Health insurance Dental insurance Life insurance Dependent care Professional dues Personal use of company jet $307,000 15,400 4,800 4,200 4,500 1,400 293,000 The life insurance is a group-term life insurance policy that provides $253,000 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.) Answer is complete but not entirely correct. Description Amount Taxable benefits Salary $ 307,000 Personal use of company jet 293,000 Life insurance (taxable portion) 270 X % $ 600,270 32 $ 192,179 X $ 420,392 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 $ 15,400 4,800 3,640 X 4,500 1,400
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