Miss Powell employed in a Company receives a salary of $30,000 during the taxable year. The salary includes child and dependent care service $5200, Educational assistance $6,000 and $3200 towards Health Saving Accounts. Besides, the employer provides Athletic Services within the premises. Such services, based on market value are worth $2,000. In addition, he got benefitted by way of the cafeteria plans. The value of such plans amounted to $3000, of which 50% is by way of Cash in lieu of the Menu provided for in the plans. Compute the effective income that will be considered for the purpose of Taxation.

Miss Powell employed in a Company receives a salary of $30,000 during the taxable year. The salary includes child and dependent care service $5200, Educational assistance $6,000 and $3200 towards Health Saving Accounts. Besides, the employer provides Athletic Services within the premises. Such services, based on market value are worth $2,000. In addition, he got benefitted by way of the cafeteria plans. The value of such plans amounted to $3000, of which 50% is by way of Cash in lieu of the Menu provided for in the plans. Compute the effective income that will be considered for the purpose of Taxation.

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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