Question
JDD Corporation provides the following to its employee, Ahmed (age 50): Salary $ 339,000 Health insurance 14,700 Dental insurance 2,100 Life insurance 3,900 Dependent care
JDD Corporation provides the following 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 | ||
|
Assume the life insurance is a group-term life insurance policy that provides $294,000 of coverage for Ahmed. (Use EXHIBIT 12-8.) Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits? (Enter all amounts as positive values. Round your intermediate computations and final answers to the nearest whole dollar.)
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
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