Summary Problem: Ralph,age 44,is an account executive for Cobb Advertising,Inc.Ralph's annual salary is $90,000.Other benefits paid by Cobb Advertising were:
$\begin{array}{lr}
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Payment of Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown gar age } & 3,180
\end{array}$
In addition to the benefits above,Cobb Advertising has a qualified pension plan into which employees can contribute (and Cobb matches)up to 5% of their annual salary.Ralph contributes the maximum allowable to the plan.
Ralph has never been able to itemize his allowable personal deductions (i.e.,he always uses the standard deduction).In 2013,Ralph receives a refund of $300 of his 2012 State income taxes and a 2012 Federal tax refund of $400.
Other sources of income:
$\begin{array}{lr}
\text { Interest credited to savings account } & \$ 980 \
\text { Value of stock received from Western Power \& Light Company } & \
\quad \text { (Ralph had the option to take the dividend in cash) } & 400 \
\text { Sale of Sea Island Adventures Common Stock } & \
\quad \text { (cost of the stock was } \$ 2,200) & 3,500 \
\text { Value of land inherited from grandfather } & 80,000 \
\text { Crop-share payments received on inherited land } & 2,820
\end{array}$
Required: Compute Ralph's 2013 gross income.

Question

Summary Problem: Ralph,age 44,is an account executive for Cobb Advertising,Inc.Ralph's annual salary is $90,000.Other benefits paid by Cobb Advertising were:
 $\begin{array}{lr}
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Payment of Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown gar age } & 3,180
\end{array}$ 
In addition to the benefits above,Cobb Advertising has a qualified pension plan into which employees can contribute (and Cobb matches)up to 5% of their annual salary.Ralph contributes the maximum allowable to the plan.
Ralph has never been able to itemize his allowable personal deductions (i.e.,he always uses the standard deduction).In 2013,Ralph receives a refund of $300 of his 2012 State income taxes and a 2012 Federal tax refund of $400.
Other sources of income:
 $\begin{array}{lr}
\text { Interest credited to savings account } & \$ 980 \
\text { Value of stock received from Western Power \& Light Company } & \
\quad \text { (Ralph had the option to take the dividend in cash) } & 400 \
\text { Sale of Sea Island Adventures Common Stock } & \
\quad \text { (cost of the stock was } \$ 2,200) & 3,500 \
\text { Value of land inherited from grandfather } & 80,000 \
\text { Crop-share payments received on inherited land } & 2,820
\end{array}$ 
Required: Compute Ralph's 2013 gross income.

Quizplus · Accepted Answer

The Answer of Summary Problem: Ralph,age 44,is an account executive for Cobb Advertising,Inc.Ralph's annual salary is $90,000.Other benefits paid by Cobb Advertising were:
 $\begin{array}{lr}
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Payment of Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown gar age } & 3,180
\end{array}$ 
In addition to the benefits above,Cobb Advertising has a qualified pension plan into which employees can contribute (and Cobb matches)up to 5% of their annual salary.Ralph contributes the maximum allowable to the plan.
Ralph has never been able to itemize his allowable personal deductions (i.e.,he always uses the standard deduction).In 2013,Ralph receives a refund of $300 of his 2012 State income taxes and a 2012 Federal tax refund of $400.
Other sources of income:
 $\begin{array}{lr}
\text { Interest credited to savings account } & \$ 980 \
\text { Value of stock received from Western Power \& Light Company } & \
\quad \text { (Ralph had the option to take the dividend in cash) } & 400 \
\text { Sale of Sea Island Adventures Common Stock } & \
\quad \text { (cost of the stock was } \$ 2,200) & 3,500 \
\text { Value of land inherited from grandfather } & 80,000 \
\text { Crop-share payments received on inherited land } & 2,820
\end{array}$ 
Required: Compute Ralph's 2013 gross income.

Summary Problem: Ralph,age 44,is an Account Executive for Cobb Advertising,Inc