Marge,age 35,is an employee of Troy,Inc.Her annual salary is $50,000.After considering the following list of benefits provided Marge,determine her gross income for the year.

Question

Quizplus · Accepted Answer

To determine Marge's gross income for the year, we need to add up her annual salary and the value of the benefits provided to her:

$50,000 (annual salary)
+ $1,500 (employer-provided health insurance)
+ $500 (employer-provided life insurance)
+ $1,500 (employer-matching contributions to 401(k))
= $53,500

However, we need to subtract the value of the flexible spending account, since that money is not taxable income:

$53,500
- $7,000 (flexible spending account)
= $46,500

Therefore, Marge's gross income for the year is $46,500.

The best choice is C.

Marge,age 35,is an Employee of Troy,Inc