Purchase Solution

Gross income, benefits, insurance policy payments

Not what you're looking for?

Ask Custom Question

Mr. T has been a night watchman at Y Company for 10 years. During the current year, he received the following payments from Y Company:

Salary: $15,000
Hospitalization insurance premiums: $3,600
Required lodging on Y's premises for Y's convenience as a condition to T's employment: $2,400
Reward for preventing a break-in: $1,000
Christmas ham (value): $15

What amount is included in Mr. T's gross income in the current year?

A. $17,400
B. $16,015
C. $16,000
D. $15,000

In 2013, Mr. and Mrs. Birch are both over 65 years of age and are filing a joint return. Their income for the current year consisted of the following:

Taxable interest: $6,000
Taxable dividends: $8,000
Social Security payments (Mr. and Mrs. Birch combined): $15,000
Tax-exempt interest: $4,000
Taxable pension: $15,000

They did not have any adjustments to income. What amount of Mr. and Mrs. Birch's Social Security benefits is taxable?

A. $0
B. $4,250
C. $7,500
D. $8,500

Mrs. Dee's husband died in the current year. She chose to receive the proceeds of her husband's $100,000 life insurance policy over a 10-year period. The monthly installments are $1,200 each. What is the amount of the annual payments that represents gross income to Mrs. Dee?

A. $0
B. $2,000
C. $4,400
D. $14,400.

Purchase this Solution
Solution Summary

A sentence or two explains the choice indicated determining the gross income, benefits, and insurance policy payments.

Solution Preview

Mr. T has been a night watchman at Y Company for 10 years. During the current year, he received the following payments from Y Company:

Salary: $15,000
Hospitalization insurance premiums: $3,600
Required lodging on Y's premises for Y's convenience as a condition to T's employment: $2,400
Reward for preventing a break-in: $1,000
Christmas ham (value): $15

What amount is included in Mr. T's gross income in the current year?
A. $17,400
B. $16,015
C. $16,000
D. $15,000

C. Insurance premiums for health care are nontaxable. Required lodging as a ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Motivation

This tests some key elements of major motivation theories.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Iris collected life insurance: how much, if any, must she include in gross income?

    179226 Iris collected life insurance: how much, if any, must she include in gross income? Iris collected $100,000 on her deceased husband's life insurance policy. The policy was purchased by the husband's employer under a group policy.

  • Federal Taxation and Gross Income Exclusions

    Malva's husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer. She elected to collect the policy in 10 equal annual payments of $12,500 each. a.

  • Life Insurance Types

    If life insurance death benefits are paid to you in a lump sum or other than at regular intervals, include the life insurance death benefits in your gross income on your tax return only to the extent the life insurance death benefits are more than the

  • Adjusted Gross Income Calculation 2009 Single

    Included are alimony, salary, pension plan, flexible spending account, group life insurance, medical, life insurance policy, fringe benefits, miscellaneous income, sytocks, bonds, rental property, municipal bonds, and sales of stocks and bonds.

  • Annuity Payments from Insurance Policy

    The income received by the life insurance company must be reported as part of gross income because the life insurance company will 1099R her for the amount distributed.

  • Tax Question - Exclusions

    Benefits for the elderly Social Security benefits (except in the case of certain higher-income taxpayers) (86) 6.

  • Bond Investments for Gary and Gladys

    He had earned wages of $20,000 before his retirement and received $10,000 in disability benefits after his retirement. The disability benefits were received from an accident and health insurance plan that was paid for by Rudy's employer.

  • Accounting: taxable income, standard deductions, taxes and more

    South's adjusted gross income was $85,000.

  • Life Insurance Proceeds

    200424 Life Insurance Proceeds Don is the beneficiary of a $50,000 insurance policy on the life of his mother, Anna. To date, Anna paid premiums of $16,000. What amount of gross income must be reported in each of the following cases? a.

View More Related Solutions