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McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068 Exercise 9
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.Assuming Ahmed is subject to a marginal tax rate of 30 percent, what is his after-tax benefit of receiving each of these benefits (ignoring FICA taxes)?
• 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.Assuming Ahmed is subject to a marginal tax rate of 30 percent, what is his after-tax benefit of receiving each of these benefits (ignoring FICA taxes)?
Explanation
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After-tax cost
The after-tax cost of sa...
McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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