Question

JDD Corporation provides the following benefits to its employee, Ahmed (age 27): Salary $ 383,000 Health...

JDD Corporation provides the following benefits to its employee, Ahmed (age 27):

Salary $ 383,000
Health insurance 19,200
Dental insurance 2,100
Life insurance 5,400
Dependent care 5,000
Professional dues 1,410
Personal use of company jet 246,000

EXHIBIT 12-8 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection
Table Summary: Chart shows cost per $1,000 of life insurance protection for one month per 5-year age bracket.

5-Year Age Bracket Cost per $1,000 of Protection for One Month Under 25 $0.05 25 to 29     .06 30 to 34     .08 35 to 39     .09 40 to 44     .10 45 to 49     .15 50 to 54     .23 55 to 59     .43 60 to 64     .66 65 to 69   1.27 70 and above   2.06

Source: Reg. §1.79-3(d)(2).

The life insurance is a group-term life insurance policy that provides $256,000 of coverage for Ahmed. Assuming Ahmed is subject to a marginal tax rate of 32 percent, what is his after-tax benefit of receiving each of these benefits?

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