Todd, age 26 and single, is an employee of the Ice Corporation. Todd's annual salary is $50,000. Ice has a qualified pension into which employees may contribute 5% of their annual salary (Todd contributes the maximum). The corporation also offers employees a flexible benefits plan. Todd pays $500 into the plan and is reimbursed for $500 of medical expenses not covered by his medical insurance. Ice also provides Todd with the following benefits:
What is Todd's taxable income from his employment?
$$\begin{array} { l r }
\text { Medical insurance } & \$ 3,200 \
\text { Group-term li fe insurance ( } \$ 80,000 \text { of coverage) } & 900 \
\text { Free-parking } & 3,300 \
\text { Dues to professional organizations } & 300 \
\text { Health club membership } & 860
\end{array}$$
?

Question

Todd, age 26 and single, is an employee of the Ice Corporation. Todd's annual salary is $50,000. Ice has a qualified pension into which employees may contribute 5% of their annual salary (Todd contributes the maximum). The corporation also offers employees a flexible benefits plan. Todd pays $500 into the plan and is reimbursed for $500 of medical expenses not covered by his medical insurance. Ice also provides Todd with the following benefits:
What is Todd's taxable income from his employment?
 $$\begin{array} { l r } 
\text { Medical insurance } & \$ 3,200 \
\text { Group-term li fe insurance ( } \$ 80,000 \text { of coverage) } & 900 \
\text { Free-parking } & 3,300 \
\text { Dues to professional organizations } & 300 \
\text { Health club membership } & 860
\end{array}$$ 
?

Quizplus · Accepted Answer

The Answer of Todd, age 26 and single, is an employee of the Ice Corporation. Todd's annual salary is $50,000. Ice has a qualified pension into which employees may contribute 5% of their annual salary (Todd contributes the maximum). The corporation also offers employees a flexible benefits plan. Todd pays $500 into the plan and is reimbursed for $500 of medical expenses not covered by his medical insurance. Ice also provides Todd with the following benefits:
What is Todd's taxable income from his employment?
 $$\begin{array} { l r } 
\text { Medical insurance } & \$ 3,200 \
\text { Group-term li fe insurance ( } \$ 80,000 \text { of coverage) } & 900 \
\text { Free-parking } & 3,300 \
\text { Dues to professional organizations } & 300 \
\text { Health club membership } & 860
\end{array}$$ 
?

Todd, Age 26 and Single, Is an Employee of the Ice