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:
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 2018, Ralph receives a refund of $300 of his 2017 State income taxes and a 2017 Federal tax refund of $400.
Other sources of income:
$$\begin{array} { l r }
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown garage } & 3,300
\end{array}$$
Required: Compute Ralph's 2018 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:
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 2018, Ralph receives a refund of $300 of his 2017 State income taxes and a 2017 Federal tax refund of $400.
Other sources of income:
 $$\begin{array} { l r } 
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown garage } & 3,300
\end{array}$$ 
Required: Compute Ralph's 2018 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:
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 2018, Ralph receives a refund of $300 of his 2017 State income taxes and a 2017 Federal tax refund of $400.
Other sources of income:
 $$\begin{array} { l r } 
\text { Health and Accident Insurance Premiums } & \$ 1,500 \
\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \
\text { Country Club Dues } & 3,660 \
\text { Dues to professional organizations, trade journals } & 550 \
\text { Parking space in downtown garage } & 3,300
\end{array}$$ 
Required: Compute Ralph's 2018 gross income.

Summary Problem: Ralph, Age 44, Is an Account Executive for Cobb