Ginny is a sole proprietor. She wants to provide 60% of salary disability coverage to Joanna, her employee who is in the 35% combined tax bracket. Joanna's W2 wages are $40,000 and Ginny's annual contribution to her qualified profit-sharing account on Joanna's behalf is $4,000. Ignoring cost-of-living adjustments or any possible Social Security benefits, calculate Joanna's
Ginny is a sole proprietor. She wants to provide 60% of salary disability coverage to Joanna, her employee who is in the 35% combined tax bracket. Joanna's W2 wages are $40,000 and Ginny's annual contribution to her qualified profit-sharing account on Joanna's behalf is $4,000. Ignoring cost-of-living adjustments or any possible Social Security benefits, calculate Joanna's
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ginny is a sole proprietor. She wants to provide 60% of salary disability coverage to Joanna, her employee who is in the 35% combined tax bracket. Joanna's W2 wages are $40,000 and Ginny's annual contribution to her qualified profit-sharing account on Joanna's behalf is $4,000.
Ignoring cost-of-living adjustments or any possible Social Security benefits, calculate Joanna's net-of-tax monthly disability benefit if Ginny pays the disability premium and Joanna's tax bracket during disability remains at 35%.
$1,300
$1,430
$2,000
$2,200
Clear my choice
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