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Rusty earns a salary of $50,000. This year, Rusty's employer establishes a cafeteria plan under which Rusty signed a salary reduction of $5,000 for which

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Rusty earns a salary of $50,000. This year, Rusty's employer establishes a cafeteria plan under which Rusty signed a salary reduction of $5,000 for which $2000 is transferred to a flexible spending account for health care to reimburse medical expenses and $3000 is transferred to a flexible spending account for dependent care. During the year, he is reimbursed $1000 for medical expenses. He is reimbursed $3000 for dependent care. What is the total amount taxable to Rusty this year? Select one: a. $47,000 b. $45,000 c. $48,000 d. $46,000 Amanda's employer pays the full premium on a disability income policy from an insurance company on behalf of all employees. After a skiing accident, Amanda was out of work for three months and collected $3,000 per month ($9,000 total) of disability benefits from this policy. In addition, Amanda received another $2,000 per month ($6,000 total) from a disability policy she had purchased herself. Amanda had paid a total of $2,000 in premiums on her policy. How much of the $15,000 total received is taxable? Select one: a. $9,000 b. $6,000 c. $4,000 d. $15,000

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