Bonita, Age 23, Is an Employee of Watson Hardware Distributors

Bonita, age 23, is an employee of Watson Hardware Distributors whose annual salary is $40,000. Watson provides employees with free group-term life insurance at twice their annual gross salary, free health and accident insurance, a qualified pension plan, and a cafeteria plan. Bonita's health and accident insurance cost Watson $1,920. The cost of her group-term life insurance coverage is $520. Watson pension plan allows employees to contribute up to 6% of their annual salary, which Watson matches. Bonita elects to have the maximum pension plan contribution made into the plan. Watson's cafeteria plan provides for $4,000; she elect to have dental coverage for $3,000 and elects to take the other $1,000 in cash. She submits medical insurance claims totaling $900 to the health insurance policy and is reimbursed $550. She receives the remaining $350 of medical insurance claims from the flexible benefits plan. How much gross income does Bonita have from her employment with Watson?