еВookProblem 4-38Nontaxable Fringe Benefits (LO. 4)Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annualsalary.Enter in the "Includable Premium" column the base amount upon which the includable premium will be determined. In the "PremiumTaxed" column, enter the amount of premium to be included in Horace's gross income.Note: If required, round your final answers to the nearest cent. If an amount is zero, enter "0".Click here to view the Gross Income from Group Term Life Insurance table.Includable PremiumPremium Taxedа.Horace is 26 and earns $16,000 per year.Horace is 26 and earns $42,000 per year.b.C.Horace is 63 and earns $42,000 per year.d.Horace is 46 and earns $90,000 per year.%24%24%24 Table 4-1Gross Income from Group Term Life Insurancein Excess of $50,000Indudable Income per $1,000Employee's AgeMonthlyAnnuallyUnder 25$.05$ .6025 to 29.06.7230 to 34.08.09.10.9635 to 3940 to 441.081.201.802,765.1645 to 49.1550 to 54.2355 to 594360 to 64.667.9265 to 691.2715.2470 and older2.0624.72O Cengage Leaming

Insurance is a type of security one assures after paying for it on an asset.Its basically consists…

Answered: prace is an employee of Ace Electric…

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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1. Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2021. Robert has an operation on his big toe in 2021 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true for 2021? a.Robert must claim the $1,200 premium and the $6,800 insurance payment as income. b.Robert must claim the $1,200 premium paid by his employer as income. c.Robert must claim the $6,800 paid by the insurance company for the operation as income. d.None of these events are taxable on his 2021 return. 2. Electronically filed tax returns: a.Have error rates similar to paper returns. b.Offer faster refunds than paper returns. c.May not be transmitted from a taxpayer's home computer. d.Constitute less than 50 percent of the returns filed with the IRS. 3. John, age 25, is a full-time student at a state university. John lives with his unmarried sister, Ann, who provides over half of his support. His only income is $4,400 of…
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! Required information [The following information applies to the questions displayed below.] Smithers is a self-employed individual who earns $37,000 per year in self-employment income. Smithers pays $2,350 in annual health insurance premiums (not through an exchange) for his own medical care. In each of the following situations, determine the amount of the deductible health insurance premium for Smithers before any AGI deduction and where the premiums are deductible. a. Smithers is single and the self-employment income is his only source of income.
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