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Required information Skip to question [The following information applies to the questions displayed below.] Matt works for Fresh Corporation. Fresh offers a cafeteria plan that

Required information

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[The following information applies to the questions displayed below.]

Matt works for Fresh Corporation. Fresh offers a cafeteria plan that allows each employee to receive $15,000 worth of benefits each year. The menu of benefits is as follows:

Benefit Cost
Health insurancesingle $ 5,000
Health insurancewith spouse $ 8,000
Health insurancewith spouse and dependents $ 11,000
Dental and vision $ 1,500
Dependent careany specified amount up to $5,000 Variable
Adoption benefitsany specified amount up to $5,000 Variable
Cashany specified amount up to $15,000 plan benefit Variable
401(k)any specified amount up to $10,000 Variable

For each of the following independent circumstances, determine the amount of income Matt must recognize and the amount of deduction Fresh may claim:

Note: Leave no answer blank. Enter zero if applicable.

Matt selects the single health insurance benefit, is reimbursed $5,000 for dependent care, and takes the remainder in cash.

b. Matt selects the single health insurance benefit, is reimbursed $5,000 for dependent care, and takes the remainder in cash.

Matty must recognize:

Fresh may deduct:

c. Matt selects the single health insurance benefit and is reimbursed for $10,000 of dependent care.

Matty must recognize:

Fresh may deduct:

d. Matt gets married and selects the health insurance with spouse benefit and takes the rest in cash to help pay for the wedding.

Matty must recognize:

Fresh may deduct:

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