South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 5, Problem 39P
To determine
Explain, the cost consideration for M Corporation in choosing between the medical benefits plan for its employees.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Insurance companies agree to pay medical costs to customers who pay into their health
insurance program. One such insurance company offers health insurance to customers
aged over 60, without any medical examination, it their family also buys the company's
health insurance. Although the cost to the company of offering this insurance to
customers above 60 is potentially high, the company still feels confident it will make a
profit from this health insurance program.
Which of the following assumptions is the company basing its expectations for good
results on?
The insurance payments made by young customers, who are less
likely to make insurance claims, outweighs the costs of medical
treatments that have to be paid to customers aged over 60.
Familles with more older members have a slightly higher average age
than familles with fewer older members.
Younger customers are likely to submit medical claims which are
substantially lower than medical claims submitted by customers over
60.
Many…
Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that
contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private
insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on
which health care program fits his needs. The following is an overview of that information.
a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $43.27. For all doctor office visits, prescriptions, and
major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered
charges. The annual deductible is $500.
b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10.
Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no…
Ronald started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that
contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private
insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on
which health care program fits his needs. The following is an overview of that information.
a. The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $45.32. For all doctor office visits, prescriptions, and
major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered
charges. The annual deductible is $350.
b. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $15.
Prescription copayments are $9. The HMO pays 100 percent after Ronald's copayment. There is no…
Chapter 5 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Holly was injured while working in a factory and...Ch. 5 - Prob. 9DQCh. 5 - Prob. 10DQ
Ch. 5 - Ted works for Azure Motors, an automobile...Ch. 5 - Prob. 12DQCh. 5 - Eagle Life Insurance Company pays its employees...Ch. 5 - Several of Egret Companys employees have asked the...Ch. 5 - Prob. 15DQCh. 5 - Tammy, a resident of Virginia, is considering...Ch. 5 - Andrea entered into a 529 qualified tuition...Ch. 5 - Prob. 18DQCh. 5 - Prob. 19DQCh. 5 - Prob. 20CECh. 5 - Prob. 21CECh. 5 - Ellie purchases an insurance policy on her life...Ch. 5 - Prob. 23CECh. 5 - Leland pays premiums of 5,000 for an insurance...Ch. 5 - Jarrod receives a scholarship of 18,500 from...Ch. 5 - Prob. 26CECh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Prob. 30PCh. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - LO.2 Leigh sued an overzealous bill collector and...Ch. 5 - LO.2 Determine the effect on gross income in each...Ch. 5 - Prob. 37PCh. 5 - Prob. 38PCh. 5 - Prob. 39PCh. 5 - Prob. 40PCh. 5 - Prob. 41PCh. 5 - LO.2 Does the taxpayer recognize gross income in...Ch. 5 - Prob. 43PCh. 5 - Prob. 44PCh. 5 - Prob. 45PCh. 5 - LO.2, 5 Rosas employer has instituted a flexible...Ch. 5 - Prob. 47PCh. 5 - Prob. 48PCh. 5 - Prob. 49PCh. 5 - Prob. 50PCh. 5 - Prob. 51PCh. 5 - Prob. 52PCh. 5 - Prob. 53PCh. 5 - Prob. 54PCh. 5 - Prob. 55PCh. 5 - Prob. 56PCh. 5 - Prob. 57PCh. 5 - Prob. 59CPCh. 5 - Prob. 1RPCh. 5 - Prob. 2RPCh. 5 - Prob. 3RPCh. 5 - Prob. 4RPCh. 5 - Prob. 1CPACh. 5 - Linda is an employee of JRH Corporation. Which of...Ch. 5 - Kim was seriously injured at her job. As a result...Ch. 5 - Danny received the following interest and dividend...Ch. 5 - Prob. 5CPA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Ronald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $48.32. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $25. Prescription copayments are $30. The HMO pays 100 percent after Ronald’s…arrow_forwardRonald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $47.34. For all doctor's office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of the covered charges. The annual deductible is $500. The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $15. Prescription copayments are $15. The HMO pays 100 percent after Ronald’s…arrow_forwardRonald started his new job as a controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contained information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross or Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program best fits his needs. The following is an overview of that information. The monthly premium cost for Ronald for the Blue Cross or Blue Shield plan will be $44.82. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 30 percent and the insurance company will cover 70 percent of the covered charges. The annual deductible is $450. The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $7. The HMO pays 100 percent after Ronald's copayment.…arrow_forward
- Which of the following statements is true? Select one: Profit sharing plans may not offer in-service withdrawals Pension and profit sharing plans are both subject to mandatory funding requirements Profit sharing plans allow annual employer contributions up to 25 percent of the employee’s covered compensation The legal promise of a profit sharing plan is to pay a pension at retirement Clear my choicearrow_forwardYour friend Taliesha Jackson of Edwardsville, Illinois, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insurance plan. Her employer offered five options. In addition, she could open a flexible spending arrangement to pay some of the premiums: Option A: A traditional health insurance plan with a $500 annual deductible and an 80 percent/20 percent coinsurance clause with a $2,000 out-of-pocket limit. Taliesha must pay $80 per month toward this plan. Option B: Same as option A except that a PPO is associated with the plan. If Taliesha agrees to have services provided by the PPO, her annual deductible drops to $200 and the coinsurance clause is waived. As an incentive to get employees to select option B, Taliesha’s employer will provide dental expense insurance worth about $40 per month. Option C: Another PPO health insurance plan with a $200…arrow_forwardYour friend Taliesha Jackson of Edwardsville, Illinois, recently changed to a new job as a CPA in a moderate-size accounting firm. Knowing that you were taking a personal finance course, she asked your advice about selecting the best health insurance plan. Her employer offered five options. In addition, she could open a flexible spending arrangement to pay some of the premiums: Option A: A traditional health insurance plan with a $500 annual deductible and an 80 percent/20 percent coinsurance clause with a $2,000 out-of-pocket limit. Taliesha must pay $80 per month toward this plan. Option B: Same as Option A except that a PPO is associated with the plan. If Taliesha agrees to have services provided by the PPO, her annual deductible drops to $200 and the coinsurance clause is waived. As an incentive to get employees to select Option B, Taliesha’s employer will provide dental expense insurance worth about $40 per month. Option C: Another PPO health insurance plan with a $200 annual…arrow_forward
- contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $49.51. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent, and the insurance company will cover 80 percent of covered charges. The annual deductible is $640. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $20. Prescription copayments are $10. The HMO pays 100 percent after Ronald's copayment. There is no annual deductible. c) The POS requires that the employee pay $31.68 per month to supplement the cost of the program with the…arrow_forward7. Nancy is considering investing in an individual variable insurance contract (IVIC) and she is researching the product features of various companies. In particular, she is interested in the kinds of fees and charges that a plan might levy on the funds in which she intends to invest. She has heard about frontend load funds, back-end load funds and no-load funds. She intends to invest $25,000 as a single sum in a non-registered IVIC and keep the investment in the plan for at least 10 years. Based on her intentions, what type of fees and charges should she consider? (A) The front-end load will charge her an annual fee on her deposit of 1% to 2%. (B) The back-end load will levy a charge on any withdrawals of 5% at any time she makes her withdrawal, (C) A no-load fund will allow her investment to grow without any charges levied against it. (D) Fees or chargeN of some kind will diminish the investment returns on any of these plan types.arrow_forwardH2.arrow_forward
- Not a graded assignment, Pls if you cannot solve it, don't send me a wrong answer. Leave it for someone elsearrow_forwardRonald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company’s health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $57.73. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent, and the insurance company will cover 80 percent of covered charges. The annual deductible is $800. b) The HMO is provided to employees free of charge. The copayment for doctors’ office visits and major medical charges is $20. Prescription copayments are $10. The HMO pays 100 percent after Ronald’s copayment.…arrow_forwardRonald Roth started his new job as controller with Aerosystems today. Carole, the employee benefits clerk, gave Ronald a packet that contains information on the company's health insurance options. Aerosystems offers its employees the choice between a private insurance company plan (Blue Cross/Blue Shield), an HMO, and a PPO. Ronald needs to review the packet and make a decision on which health care program fits his needs. The following is an overview of that information. a) The monthly premium cost to Ronald for the Blue Cross/Blue Shield plan will be $52.59. For all doctor office visits, prescriptions, and major medical charges, Ronald will be responsible for 20 percent and the insurance company will cover 80 percent of covered charges. The annual deductible is $720. b) The HMO is provided to employees free of charge. The copayment for doctors' office visits and major medical charges is $10. Prescription copayments are $5. The HMO pays 100 percent after Ronald's copayment. There is no…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT