Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After leaving the hospita she spent 25 days in a nursing home that cost $170 per day. Theresa, who earns $4,500 per month, missed two months of work. Theresa had a health insurance plan through her employer. The policy had a $1,000 deductible and an 80/20 coinsurance clause with a $2,000 coinsurance cap. She had also accumulated 21 sick days (equivalent to one month) at work. Otherwise she had no long-term care or disability insurance. She was out of work for a total of 42 days.
Q: Need help with risk managment. Rasp and his wife both have life insurance for 50,000 dollars through…
A: The question is based on the concept of risk management and insurance to minimize the associated…
Q: adeline has 30K per year of income as well as 25K per year of investment income. There was a problem…
A: Medical expenses are the costs to treat or prevent an injury or disease,include health and dental…
Q: Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k),…
A: Kathleen is below 59 1/2, she is eligible for additional 10% penalty on early withdrawal
Q: live’s daughter Polly suffers from a rare illness. During the current year, Olive drove Polly to see…
A: Medical expenses deduction is those deductions which help in take some amount of reimbursement of…
Q: Robert had an accident and injured a driver and her car. He has auto insurance with the minimum…
A: InsuranceInsurance is a type of financial security or protection against certain casualties or…
Q: At age 30, Ravonda purchased a whole life insurance policy with a face value of $105,325. She is now…
A: The reduced paid-up insurance calculation is used when a policyholder decides to stop paying…
Q: Calvin reviewed his canceled checks and receipts this year for charitable contributions, which…
A: Charitable contributions to qualified charitable organizations are deductible by individual…
Q: lauren borrows Mary's car. Lauren has 25/50/25 limits, and Mary has 50/100/50 limits. Lauren, while…
A: A vehicle insurance coverage will protect you and other family members on the policy, whether you…
Q: Britta has been accepted into a 2-ycar Medical Assistant program at a career school. She has been…
A: $ 6,643.5
Q: endorsement
A: Introduction: The above case says that Becky Smith signed a property but she has no ownership…
Q: Sarah's comprehensive major medical health insurance plan at work has a deductible of $400. The…
A: Introduction: Medical insurance always plays an important role in everyone's life. A person who is…
Q: Ren, age 63 in 2023, is planning for retirement at normal retirement age of 65 from the Salt Lake…
A: 457 B is retirement plan available for the government employees and also for some of the non profit…
Q: age 57, recently suffered a stroke. She was in intensive ital, she spent 25 days in a nursing home…
A: Insurance plan refer to the form of a contract in which the policyholder and the insurance company…
Q: Sharon is a 60-year-old female who has recently become the legal guardian and sole caretaker of her…
A: In Sharon's Case:Given her choice for low-priced insurance lasting 15 years, a level top rate term…
Q: John made a prepaid purchase of medical insurance of $3,000 for the year. In seven months he…
A: First, we need to determine the monthly cost of the insurance. This can be done by dividing the…
Q: Calculate Calvin's charitable contribution deduction and carryover (if any) under the following…
A: The IBM stock is capital gain property but because the done is a private nonoperating foundation,…
Q: Sue is a small business owner who often gives gifts to clients. She gives a $40 gift to her client,…
A: Expenses: Expenses are the amount spent for running business activities in return of some benefit.
Q: Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer…
A: * As per the bartleby guidelines, in case of interlinked question answer first 3 only You are…
Q: and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2021. They have four…
A: Step 1: Calculate Total Medical ExpensesAdd up all the medical expenses they paid in 2021:Doctor,…
Q: Katie made a prepaid purchase of medical insurance of $3,200 for the year. In seven months she…
A: Insurance Value =$3200 Insurance Period = 1 year = 12 months Cancelled on 7th months
Q: On December 27, 2019, Roberta purchased four tickets to a charity ball sponsoredby the city of San…
A: Deductions from tax - These are the amount of expense which are allowed to be deducted from the net…
Q: Medical Expense Deduction. In 2021, Charla, a single taxpayer with no dependents, was severely hurt…
A: Taxable income refers to the base upon which an income tax system imposes tax. In other words, the…
Q: Following a car accident that caused the untimely death of her younger sister Lara and her…
A: The first part of the question is asking what will happen under a cross-purchase buy-sell agreement…
Q: Stephanie was involved in a car accident and rushed to the emergency room. She received stitches for…
A: given, emergency bill = $850 annual deductible = $300 coverage = 80%
Q: On December 27, 2021, Roberta purchased four tickets to a charity ball sponsored by the city of San…
A: Answer - a. Cash basis of accounting - Roberta can deduct ($200 x 4) - ($35 x 4) = $800 - $140 =…
Q: Latasha, a restaurant owner, is 24 years old and has owned a major medical insurance policy for…
A: The objective of the question is to calculate the total claim that Latasha can make from her…
Q: Sal required surgery for a the removal of a tumor. His total bill for medical services was $90,000.…
A: Please see the step 2 for the solution
Q: The Baulding family has a basic health insurance plan that pays 80 percent of out-of-hospital…
A: InsuranceThe amount that a person or individual pays for the safety or precaution of some unexpected…
Q: Valentino is a patient in a nursing home for 45 days of 2021. While in the nursing home, he incurs…
A: Gross income of an individual or an organization can be define as total amount of revenue or other…
Q: Barbara incurred the following expenses during the year: $840 dues at ahealth club she joined at the…
A: Medical expenses include all costs paid in the diagnosis and monitoring of injury or disease.…
Q: Cleveland is a post
A: What's a Health Savings Account? A Health Savings Account (HSA) is a type of personal savings…
Q: Larissa, who is age 45, has just resigned from her current job. She worked for Ace, which sponsors a…
A: Given in the question:Cash Balance = $50,000401(k) Plan = $20,000Matching Contribution by employer =…
Q: Tommy and Allison Arthur were going with their Aunt Kelly to their parents' home in Folly Beach.…
A: The question is related to Insurance. The details are given regarding the limits of medical…
Q: Kara has a health insurance policy with a $2,000 deductible, $4,000 out of pocket limit, and 75/25…
A: Kara's deductible is $2,000.00. This means she is responsible for paying the first $2,000 of her…
Q: Billy broke his ankle sliding into first base. The doctor charged $335 to mend it. Billy's insurance…
A: The term insurance can be defined as the assurance made by insurer to the insured to cover up the…
Q: 00 for follow-up visits with his doctor. He also paid $550 for prescription medicine and $600 to a…
A: Itemized deductions refer to the form of deduction or expense which is subtracted from the adjusted…
Q: Calvin reviewed his canceled checks and receipts this year for charitable contributions, which…
A: Charitable Contribution Deduction: Particular Amount ($) Stock 66,000 Painting 4,320 Cash…
Q: Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a…
A: The objective of the question is to determine the tax impact resulting from Kwan's death,…
Q: Sarah purchases a health insurance plan. The annual premium is $7,000. The plan has the following…
A: Answer $4,000 deductible, sarah would pay the first $4,000 of his healthcare expenses during the…
Q: Krishna is 56 years old; he has contributed to the CPP without interruption for over 30 years. While…
A: Introduction: CPP: The current purchasing power (CPP) approach converts the importance of the…
Q: Michael has split - limit coverage equal to 50/100/25 on his vehicle. Yesterday, Michael rear ended…
A: The objective of the question is to determine how much Michael's insurance company will pay him from…
Q: Barbara was driving her vehicle, and her friend Kevin was a passenger. They were starting a one-week…
A: The explanation is given below
Q: Becky's comprehensive major medical health insurance plan at work has a deductible of $710. The…
A: Insurance helps to hedge the risk against unpredictable losses. The insured is required to pay a…
Q: Charitable contribution deduction Carryover
A: Calculation of Charitable Contribution deduction Capital Gain = $66,000 Painting = $4,320 Ordinary…
Q: Susan is in an indemnity health insurance plan that has a $500 deductible and a co- insurance…
A: The procedure normally operates as follows under an indemnity health insurance plan with a…
Q: Roger Orfield had a skiing accident, and the doctor told him he must not work for the next four…
A: Disability insurance is the insurance that acts as a partial replacement of income that is lost due…
Q: Calvin reviewed his cancelled checks and receipts this year for charitable contributions, which…
A: Maximum remaining contributions.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Carmen had worked for Sparrow Corporation for thirty years when she died of a heart attack at age 60. She was practically penniless at the time of her death, owed a $12,000 hospital bill, and had a disabled spouse. The company was very concerned about its public image, and rather than run the risk of embarrassment from one of its long-term employees dying and leaving her spouse with insufficient means, the Board of Directors agreed to pay Carmen’s hospital bill and to give her spouse $6,000 per year for the rest of his life. Discuss both sides of the question whether Carmen (or her estate) and her spouse realize any taxable income from the above.Hana's only child, Kwan, passed away last year at the age of 42. Kwan had been diagnosed with a severe disability as a child and was financially and physically dependent on Hana his entire life. Hana opened an RDSP for Kwan nine years ago and contributed a total of $27,000 to the account. Hana's contributions attracted total Canada Disability Savings Grants (CDSG) of $6,000. The RDSP had a balance of $42,000 when Kwan died. What is the tax impact resulting from Kwan's death? Question 20 options: Kwan's estate will receive taxable income of $9,000 and non-taxable income of $ 27,000. Kwan's estate will receive taxable income of $15,000 and Hana will receive non-taxable income of $27,000. Kwan's estate will receive taxable income of $27,000 and non-taxable income of $15,000.Britta has been accepted into a 2-year Medical Assistant program at a career school. She has been awarded a $6,000 unsubsidized 10-year federal loan at 4.29%. She knows she has the option of beginning repayment of the loan in 2.5 years. She also knows that during this non-payment time, interest will accrue at 4.29%. Britta made her last monthly interest-only payment on May 5. Her next payment is due on June 5. What will be the amount of that interest-only payment? Round your answer to the nearest cent. *
- avid R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a elf-employed consultant specializing in retail management, and Ella is a dental hygienist for a chain of dental clinics. David earned consulting fees of $145,000 in 2022 . He maintains his own office and pays for all business expenses. The Coles are adequately covered by the medical plan provided by Ella's employer but have chosen not to participate in its §401(k) retirement plan. David's employment-related expenses for 2022 are summarized below. \table[[Airfare,$8,800Oscar Wang was seriously injured in a snowboarding accident that broke both his legs and an arm. His medical expenses included five days of hospitalization at $900 a day, $9,400 in surgical fees, $6,800 in physician's fees (including time in the hospital and six follow-up office visits), $460 in prescription medications, and $2,100 for physical therapy treatments. All of these charges fall within customary and reasonable payment amounts. If Oscar had an indemnity plan that pays 90 percent of his charges with a $1,000 deductible and a $5,000 stop-loss provision, how much would he have to pay out of pocket? Round the answer to the nearest dollar. $ What would Oscar's out-of-pocket expenses be if he belonged to an HMO with a $40 co-pay for office visits? Assume there are no other out-of-pocket costs. Round the answer to the nearest dollar. $ Monthly premiums are $320 for the indemnity plan and $455 for the HMO. If he has no other medical expenses this year, which plan provides…In one of our most recent classes, we spent time discussing disability insurance. In a follow up to our discussion on disability insurance, let us assume that Michael Johnson recently moved to Hartford, CT. to accept a new job. He is currently 60 and is planning for his upcoming retirement. He has $400,000 in his retirement account and would like to have doubled that by the age of 67. However. He became permanently disabled after getting into a vehicle accident a few months ago. If its average earnings were $65,000. What would be his Social Security disability benefits? Social Security disability benefits and at age 65 and Michael will switch over to Social Security retirement benefits? What will be is retirement benefit amount at age 65? How much? Will Michael earn each year on his $400,000 portfolio if it earns 4% annually? How large an amount could be withdrawn from his account each month starting at age 60? /, 25 Years of retirement
- Jinhee Ju, 27, just received a promotion at work that increased her annual salary to $40,000. She is eligible to participate in her employer's 401(k) plan, to which the employer matches dollar-for-dollar workers' contributions up to five percent of salary. However, Jinhee wants to buy a new $25,000 car in 4 years, and she wants to save enough money to make a $8,000 down payment on the car and finance the balance. Also in her plans is a wedding. Jinhee and her boyfriend, Paul, have set a wedding date 2 years in the future, after he finishes medical school. Paul will have $95,000 of student loans to repay after graduation. But both Jinhee and Paul want to buy a home of their own as soon as possible. This might be possible because at age 30, Jinhee will be eligible to access a $55,000 trust fund left to her as an inheritance by her late grandfather. Her trust fund is invested in 8 percent government bonds. a. Justify Jinhee's participation in her employer's 401(k) plan using the time…Martha and Louis Mitchell are a dual-career couple who just had their first child. Louis, age 30, already has a group life insurance policy, but Martha's employer does not offer a life insurance benefit. A financial planner is recommending that the 27- year-old Martha buy a $250,000 whole life policy with an annual premium of $1,670 (the policy has an assumed rate of earnings of 5 percent a year). Help Martha evaluate this advice and decide on an appropriate course of action .Ray had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor. Albert had a life insurance policy with a face amount of $100,000. He had paid $25,000 of premiums on the policy. The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000. He accepted the $80,000. Albert used $15,000 to pay his medical expenses. Albert made a miraculous recovery and lived another 20 years. As a result of cashing in the policy: a.Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses. b.Albert must recognize $65,000 ($80,000 – $15,000) of gross income. c.Albert is not required to recognize any gross income because of his terminal illness. d.Albert must recognize $40,000 ($80,000 – $25,000 – $15,000) of gross income.
- Carol, age 40, has an IRA with Blue Mutual Fund. Her balance in the fund is $150,000. She has heard good things about the management of Red Mutual Fund, so she opens a Red Fund IRA. Carol requests her balance from the Blue Fund be distributed to her on July 1, 20XX. She opted to have no withholding on the distribution. a. How much will Carol receive from the Blue Fund IRA? 150,000 v b. If the funds were distributed from a qualified retirement plan (not an IRA), how much would Carol receive? 150,000 x c. When is the last day Carol can roll over the amount received into the Red Fund IRA and avoid taxation in the current year? Assume the hardship waiver provisions does not apply. August 30 d. Assuming the funds were distributed from a qualified retirement plan, not from an IRA, how much will Carol have to contribute to the Red Fund IRA to avoid taxable income and any penalties?Please help me understand this question?Kevin recently purchased a board form HO-2 policy with no deductible. The policy value is $174,000. A year later, his roof is damaged by vandalism and he suffers a loss of $139,200. If the replacement value of Kevin’s house is $290,000 and the insurance policy includes a replacement cost requirement of 80%, he will receive a reimbursementBobby is 35 and single. He works for ExxonMobil in their offices in Dallas, Texas. Bobby has an Aetna PPO with a $2,500 individual deductible, co-insurance in network is 80/20. His Max out of pocket is $10,500 per year. On the way to a meeting at the office, Bobby trip and fell down the stairs. He suffered significant injuries and had to be airlifted to the hospital, He was in a coma for 3 days and had to have multiple surgeries. Fortunately, he has fully recovered. All-in-all his medical bills added up to $82,345 How much of Bobby's medical expenses will Aetna cover? (Use a positive number and round to the nearest dollar)