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Cleveland is a post

Cleveland is a post

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cleveland is a post office carrier and has an HSA account with a balance of $24,568. $11,500 of that balance are the contributions he made and the remaining $13,068 are growth. His daughter, Roberta, needs to have surgery after tearing her ACL playing basketball. The BXBS policy has a family deductible of $2,500, coinsurance of 80/20, and a family max out of pocket is $12,500. If Cleveland uses the HSA account to cover their portion, how much of the distribution will be taxable? $2,500 53.2% of the distribution $12,500 O $0
Transcribed Image Text:Cleveland is a post office carrier and has an HSA account with a balance of $24,568. $11,500 of that balance are the contributions he made and the remaining $13,068 are growth. His daughter, Roberta, needs to have surgery after tearing her ACL playing basketball. The BXBS policy has a family deductible of $2,500, coinsurance of 80/20, and a family max out of pocket is $12,500. If Cleveland uses the HSA account to cover their portion, how much of the distribution will be taxable? $2,500 53.2% of the distribution $12,500 O $0
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