Question
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
Skip to question
[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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