Fred is considering three job offers in advertising. • A full-time position as a coordinator that pays a salary of $40,000 per year. • A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week. • A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising. The following are the specifics about the benefits of the job opportunities: • The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%). • Fred will deduct 15% of Gross Income to cover Federal Income Tax. • Fred does not live in a state with State Income Tax. • Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year. • The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan. • The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a retirement plan that costs 3% of after tax income. • The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month. 9. What is the GROSS ANNUAL INCOME for the DESIGNER position?
Fred is considering three job offers in advertising. • A full-time position as a coordinator that pays a salary of $40,000 per year. • A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week. • A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising. The following are the specifics about the benefits of the job opportunities: • The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%). • Fred will deduct 15% of Gross Income to cover Federal Income Tax. • Fred does not live in a state with State Income Tax. • Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year. • The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully paid retirement plan. • The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a retirement plan that costs 3% of after tax income. • The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month. 9. What is the GROSS ANNUAL INCOME for the DESIGNER position?
Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses
Section: Chapter Questions
Problem 42P
Related questions
Question
A. $40,000
B. $50,824
C. $58,240
D. $60,000
![Fred is considering three job offers in advertising.
• A full-time position as a coordinator that pays a salary of $40,000 per year.
• A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week.
• A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising.
The following are the specifics about the benefits of the job opportunities:
• The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%).
• Fred will deduct 15% of Gross Income to cover Federal Income Tax.
• Fred does not live in a state with State Income Tax.
• Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year.
• The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully
paid retirement plan.
• The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a
retirement plan that costs 3% of after tax income.
• The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month.
9. What is the GROSS ANNUAL INCOME for the DESIGNER position?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F109fbe19-ea20-407d-8943-94a2e9654aba%2F307cbfb3-1cb4-4f3c-95ae-1af12352ec0c%2F0x7fosp_processed.png&w=3840&q=75)
Transcribed Image Text:Fred is considering three job offers in advertising.
• A full-time position as a coordinator that pays a salary of $40,000 per year.
• A full-time position as a designer that pays an hourly wage of $28. The job assumes five 8-hour days per week.
• A sales representative that pays a 5% commission. Sales reps typically sell an average of $100,000 per month in advertising.
The following are the specifics about the benefits of the job opportunities:
• The U.S. government will deduct Social Security (6.2%) and Medicare (1.45%).
• Fred will deduct 15% of Gross Income to cover Federal Income Tax.
• Fred does not live in a state with State Income Tax.
• Fred is planning on taking two weeks of vacation and has typically been sick 3 days per year.
• The Coordinator job includes two weeks of paid vacation and five paid sick days per year, paid health insurance, life insurance costing $35 per month, and a fully
paid retirement plan.
• The Designer job includes five paid vacation days and three paid sick days per year, paid health insurance, life insurance costing $35 per month, and a
retirement plan that costs 3% of after tax income.
• The Sales job has no paid vacation or sick days, paid health and life insurance, and a retirement plan that costs $350 per month.
9. What is the GROSS ANNUAL INCOME for the DESIGNER position?
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