Henry,age 45,is an employee of Argus Corporation.His fringe benefits for the current year included:
-$2,500 contributed by Argus to his qualified deferred compensation retirement plan.This year,the retirement plan earned $600 in interest and dividend income.Henry received no distributions from this plan
-A $100,000 face value group term life insurance policy for which Argus paid premiums of $650.Henry is a key employee and it is a discriminatory plan.
-The use of a company-owned automobile.The annual lease value of this car is $15,000.Henry used it 70% of the time (and miles)for personal use and 30% for business use.
-Free parking in the company parking lot (valued at $100 per month)
How much must Henry include in gross income?

Question

Henry,age 45,is an employee of Argus Corporation.His fringe benefits for the current year included: 
-$2,500 contributed by Argus to his qualified deferred compensation retirement plan.This year,the retirement plan earned $600 in interest and dividend income.Henry received no distributions from this plan
-A $100,000 face value group term life insurance policy for which Argus paid premiums of $650.Henry is a key employee and it is a discriminatory plan.
-The use of a company-owned automobile.The annual lease value of this car is $15,000.Henry used it 70% of the time (and miles)for personal use and 30% for business use.
-Free parking in the company parking lot (valued at $100 per month)
How much must Henry include in gross income?

Quizplus · Accepted Answer

Henry must include $11,150 in gross income. This includes the $2,500 contribution to his qualified deferred compensation retirement plan, the $650 premiums paid by Argus for his group term life insurance policy, and $10,500 (70% of $15,000) for the personal use of the company-owned automobile. The free parking in the company parking lot is not taxable.

Henry,age 45,is an Employee of Argus Corporation