1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dangina [55]
3 years ago
7

JDD Corporation provides the following benefits to its employee, Ahmed (age 57): Salary $ 307,000 Health insurance 15,400 Dental

insurance 4,800 Life insurance 4,200 Dependent care 4,500 Professional dues 1,400 Personal use of company jet 293,000 The life insurance is a group-term life insurance policy that provides $253,000 of coverage for Ahmed. Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits
Business
1 answer:
Vesna [10]3 years ago
6 0

Answer:

His after-tax benefit of receiving each of these benefits are as follows:

After-tax benefits of taxable items = $410,292

Non taxable benefits:

Health insurance = $15,400

Dental insurance = $4,800

Non taxable premium = $830

Dependent care = $4,500

Professional dues = $1,400

Explanation:

Life insurance = 4,200

Group-term life insurance coverage = $253,00

Amount of premium exempted from tax by law =$50,000

Non taxable premium = (Amount of premium exempted from tax by law / Group-term life insurance coverage) * Life insurance = ($50,000 / $253,000) * 4,200 = $830

Taxable premium = Life insurance - Non taxable premium = $4,200 - $830 = $3,370

Therefore, we have:

Taxable benefits = Salary + Personal use of company jet + Taxable premium = $307,000 + $293,000 + $3,370 = $603,370

Income tax on benefits = Taxable benefits * Marginal tax rate = $603,370 * 32% = $193,078

After-tax benefits of taxable items = Taxable benefits - Income tax on benefits = $603,370 - $193,078 = $410,292

Therefore, his after-tax benefit of receiving each of these benefits are as follows:

After-tax benefits of taxable items = $410,292

Non taxable benefits:

Health insurance = $15,400

Dental insurance = $4,800

Non taxable premium = $830

Dependent care = $4,500

Professional dues = $1,400

You might be interested in
During 20--, Rachael Parkins, president of Mathieson Company, was paid a semimonthly salary of $7,700. Compute the amount of FIC
r-ruslan [8.4K]

Answer:

Total FICA tax is $ 9792+ $ 823.60= $ 10,615.6

Explanation:

The FICA tax is 7.65% for employees wages upto 128,000 and 1.45 % in excess of $ 128,000

Suppose the FICA tax rate is 7.65 % and her monthly salary is $ 7,700*2= $15,400

Her yearly salary is $15,400* 12=  $ 184,800 which is above $ 128,000

So the Fica Tax would be = 128,000 * 7.65%= $ 9792

And 1.45 % 0f (184,800- 128,00)$ 56,800= $ 823.60

Total FICA tax is $ 9792+ $ 823.60= $ 10,615.6

6 0
3 years ago
A producer of fixed proportion goods X and Y (Q = Qx = Qy) has marginal costs and revenues of MC = 10 Q, MRX = 150 - 6 QX, MRy =
sammy [17]

Answer:

a. Qx =9, Qy=9

Explanation:

As per the given data

Q = QX = QY

MRX = 150 - 6QX = 150 - 6Q

MRY = 30 - 4QY = 30 - 4Q

MC = 10Q

Now calculate the Marginal revenue as follow

MR = MRX + MRY

MR = 150 - 6Q + 30 - 4Q

MR = 150 + 30 - 6Q - 4Q

MR = 180 - 10Q

The Equilibrium of the producer will be

MR = MC

180 - 10Q = 10Q

180 = 10Q + 10Q

180 = 20Q

Q = 180 / 20

Q = 9

As we know

Q = Qx = QY

Hence, the value of Qx  and QY is 9

7 0
3 years ago
At the beginning of 2018, Midway Hardware has an inventory of $310,000. Because sales growth was strong during 2018, the owner w
nalin [4]

Answer:

$1,625,000

Explanation:

For computing the purchase amount first we have to determine the cost of goods sold which is shown below;

As we know that

Cost of goods sold = Sales revenue - gross profit

                               = $2,100,000 - $2,100,000 × 25%

                               = $2,100,000 - $525,000

                               = $1,575,000

Now the purchase amount is

Cost of goods sold = Beginning inventory + purchase - ending inventory

$1,575,000 = $310,000 + purchase - $360,000

So, the purchase amount is $1,625,000

4 0
3 years ago
What role do governments play in the free enterprise system?
Afina-wow [57]

I would think the answer is C.

6 0
2 years ago
Read 2 more answers
What are the most important benefits of using virtual reality in business training?.
N76 [4]

The most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world.

<h3>What is a Virtual Reality?</h3>

A Virtual Reality refers to a simulated experience that are very similar from the real world.

In conclusion, the most important benefits of using virtual reality in business training is that its let the trainees undergo at similar experience that they will encounter in real world

Read more about Virtual Reality

<em>brainly.com/question/26597344</em>

6 0
2 years ago
Other questions:
  • The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the compan
    7·1 answer
  • asyFind manufactures and sells golf balls. The company is conducting a price test to find a better price point. Presently their
    7·1 answer
  • If Ed=2 and price decreases by 1%, by what percentage and in what direction will quantity demanded change?
    13·1 answer
  • 10. Dixon Construction Company was awarded a contract to construct an interchange at the junction of U.S. 94 and Highway 30 at a
    7·1 answer
  • Thomlin Company forecasts that total overhead for the current year will be $11,597,000 with 164,000 total machine hours. Year to
    8·1 answer
  • Software Distributors reports net income of $58,000. Included in that number is depreciation expense of $11,500 and a loss on th
    14·1 answer
  • Which account will appear in the sales ledger?
    7·1 answer
  • Sparty Corporation has provided the following information for its most recent year of operation:
    12·1 answer
  • Your boss is considering a 5-year investment project. If the project is accepted, it would require an immediate spending of $678
    11·1 answer
  • What is the importance of having a good management​
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!