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.
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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