JDD Corporation provides the following benefits to its employee, Ahmed (age 47):

Salary $300,000 Health insurance 10,000 Dental insurance 2,000 Life insurance 3,000 Dependent care 5,000 Professional dues 500 Personal use of company jet 200,000 Assume the life insurance is a group-term life insurance policy that provides

$200,000 of coverage for Ahmed.

a) Assuming Ahmed is subject to a marginal tax rate of 30 percent, what is his after-tax benefit of receiving each of these benefits?

45. Gray’s employer is now offering group-term life insurance. The company will provide each employee with $100,000 of group-term life insurance. It costs Gray’s employer $300 to provide this amount of insurance to Gray each year.

Assuming that Gray is 52 years old, determine the monthly premium that Gray must include in gross income as a result of receiving the group-term life benefit.