Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $133,000. Afterbeing discharged from the hospital, she spent 25 days in nursing home at a cost of $240 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a healthinsurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent toone month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar.a. How much of Christina's direct medical expenses was paid by her insurance policy?$b. What did Christina have to pay for her nursing home care?$c. How much income did Christina lose?$

Insurance plan refer to the form of a contract in which the policyholder and the insurance company…

Answered: age 57, recently suffered a stroke. She…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Information provided for Alexis • Alexis has been certified as impaired by a medical doctor and requires indefinite care from Johnny and Moira She received $5,000 from social assistance • She has a part time job and made $6,000. El of $95, CPP of $270, enhanced CPP of $30 and federal income taxes of $900 were deducted from her pay • • She took a couple courses at Brock University on a part time basis and Moira and Johnny paid the tuition fees which totalled $2,000 • She incurred $7,500 in medical expenses for physiotherapy and registered massage therapy REQUIRED: Calculate Alexis's federal and provincial income tax owing
Bobby is 35 and single. He works for ExxonMobil in their offices in Dallas, Texas. Bobby has an Aetna PPO with a $2,500 individual deductible, co-insurance in network is 80/20. His Max out of pocket is $10,500 per year. On the way to a meeting at the office, Bobby trip and fell down the stairs. He suffered significant injuries and had to be airlifted to the hospital, He was in a coma for 3 days and had to have multiple surgeries. Fortunately, he has fully recovered. All-in-all his medical bills added up to $82,345 How much of Bobby's medical expenses will Aetna cover? (Use a positive number and round to the nearest dollar)
Martha incurred medical and dental expenses in 2020 for herself, her husband, Terry and her six year-old daughter, Sophia as follows: Medical/Dental Cost Net Income Martha $3,500 $132,000 Terry (spouse) 2,200 70,000 Sophia (child under 18) 800 According to the T1 Guide, either spouse can claim the medical expenses. Which spouse should claim the medical expense credit to receive the maximum amount? Type either Martha or Terry in the space provided. What is the maximum federal medical expense tax credit that can be claimed in 2020? Do not add commas or dollar signs to your answers. Round to the nearest whole number.
Mary Jane’s father lived with them until his death in November. His only sources of income were salary of $3,800, unemployment compensation benefits of $3,500, and Social Security benefits of $4,100. Of this amount, he deposited $6,000 in a savings account. The remainder of his support of $11,000, which included funeral expenses of $4,500, was provided by John and Mary Jane. Is Mary Jane's father considered a dependant?
Jenny Smith, age 57, is single. Jenny earned wages of $52,000 and was enrolled the entire year in a high deductible healthplan (HDHP) with self-only coverage. During the year, Jenny contributed $2,000 to her Health Savings Account (HSA) and hermother also contributed $1,000 to Jenny's HSA account. Jenny's Form W-2 shows $650 in Box 12 with code W. She has Form 5498-SA showing$3,650 in Box 2.. Jenny took a distribution from her HSA to pay her unreimbursed expenses: 8 visits to a physical therapist after her knee surgery $400 unreimbursed doctor bills for $900 prescription medicine $200 replacement of a crown $1,500 over the counter medication $40 gym membership $240 Jenny is a U.S. citizen with a valid Social Security number. 6. Form 8889, Part 1 is used to report HSA contributions made by _______________. a. Jenny b. Jenny's employer c. Jenny's mother d. All of the above Jenny is eligible to contribute an additional $1,000 to her HSA because she is age 55…
Fifteen years ago Sam, a life insurance agent, sold his good friend Tanya a twenty year term life insurance policy in which she was both the policy holder and the life insured. Tanya designated her best friend Julia as beneficiary. Tanya died, and the insurance company received notice of her death from her executor. Given this scenario, what was the next step in this process? Select onet a. Julia had to contact the insurer to requesta claim form b. Sam contacted the insurer to request the notice of death c. The insurer contacted Sam to help Julia complete the claim form d. The insurer notified Julia so that she could complete the claim form
Michael Howitt of Berkley, Michigan, recently had his gallbladder removed. His total bill for this surgery, which was his only health care expense for the year, came to $13,810. His health insurance plan has a $450 annual deductible and an 80/20 coinsurance provision. The cap on Michael's coinsurance share is $1,910. Round your answers to the nearest dollar. a. How much of the bill will Michael pay? b. How much of the bill will be paid by Michaels insurance?
Carol Wheeler, age 56, is single. Carol earned wages of $48,000 and was enrolled the entire year in a high deductiblehealth plan (HDHP) with self-only coverage. During the year, Carol contributed $3,000 to her Health Savings Account (HSA) and hercousin also contributed $1,000 to Carol’s HSA account. Carol’s Form W-2 shows $600 in Box 12 with code W. She has Form 5498-SA showing$4,600 in Box 2. Carol took a distribution from her HSA to pay her unreimbursed expenses: 2 visits to a physical therapist due to a car accident $300 unreimbursed doctor bills for $700 prescription medicine $400 replacement of a crown $1,500 over the counter sinus medication $80 10 Zumba classes for $125 Carol is a U.S. citizen with a valid Social Security number. 8. The over the counter sinus medication is a qualified medical expense for HSApurposes. True False
Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After leaving the hospital, she spent 25 days in a nursing home that cost $170 per day. Theresa, who earns $4,500 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. She was out of work for a total of 42 days. How much of Theresa's direct medical expenses was paid by her insurance policy? C How much income did Theresa lose?
Christina Haley of Elko, Nevada, age 57, recently suffered a stroke. She was in intensive care for 3 days and was hospitalized for 10 more days. Her total bill for this care was $132,500. After being discharged from the hospital, she spent 25 days in a nursing home at a cost of $290 per day. Christina, who earns $4,500 per month, missed two months of work. Christina had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability income insurance. Round your answers to the nearest dollar. How much of Christina’s direct medical expenses was paid by her insurance policy? $ What did Christina have to pay for her nursing home care? $ How much income did Christina lose? $
Glenda is 71 years old and lives in a retirement home. She paid a total of $9,000 in attendant care fees, which she decided to claim as a medical expense. Form T2201 is certified by the CRA. How much can Glenda claim on Line 31600? gha $0 $130 $8,870 $9,000
45. Sandra and Bill, both 78, are Texas residents. Sandra participates in the state's Long- Term Care Partnership program; Bill, her neighbor, does not. Both are found eligible for Medicaid payment of their LTC services. Which of the following can Sandra do that Bill cannot? (Search Chapter 11) a. transfer designated resources to another individual without penalty ob. avoid having any of her monthly income applied to the cost of her LTC services OC. avoid Medicaid eligibility redetermination and reverification after initial eligibility od. designate her home as a protected countable asset

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS