Problem 5,40 (Algorithmic) (LO. 2) Betsy spent the last 55 days of 2022 in a nursing home. The cost of the services provided to her was $17,875 ($325 per day) paid $6,400 toward the cost of her stay. Betsy also received $14,360 of benefits under a long-term care insurance policy she Assume that the Federal daily excludible amount is $390. f the amount is zero, enter 0. What is the effect on Betsy's gross income? he amount of her exclusion is s X and the amount included in her gross income is
Problem 5,40 (Algorithmic) (LO. 2) Betsy spent the last 55 days of 2022 in a nursing home. The cost of the services provided to her was $17,875 ($325 per day) paid $6,400 toward the cost of her stay. Betsy also received $14,360 of benefits under a long-term care insurance policy she Assume that the Federal daily excludible amount is $390. f the amount is zero, enter 0. What is the effect on Betsy's gross income? he amount of her exclusion is s X and the amount included in her gross income is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 5:40 (Algorithmic) (LO. 2)
Betsy spent the last 55 days of 2022 in a nursing home. The cost of the services provided to her was $17,875 ($325 per day). Medicare
paid $6,400 toward the cost of her stay. Betsy also received $14,360 of benefits under a long-term care insurance policy she purchased.
Assume that the Federal daily excludible amount is $390.
If the amount is zero, enter 0.
What is the effect on Betsy's gross income?
The amount of her exclusion is s
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X and the amount included in her gross income is $
* Check My Work
Congress encourages employers to provide employees, retired former employees, and their dependents with accident and health benefits, i
disability insurance, and long-term care plans. The premiums are deductible by the employer and excluded from the employee's income.
Generally, long-term care insurance, which covers expenses such as the cost of care in a nursing home is treated the same as accident and health
insurance benefits.
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