Question: Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf. Salary
Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf.
Salary payments $ 127,500
Contributions to qualified pension plan 16,300
Qualified health insurance premiums 12,250
Year-end bonus 24,400
Annual director’s fee 12,900
Group-term life insurance premiums (face = $40,000) 1,220
Whole life insurance premiums (face = $100,000) 1,510
Disability insurance premiums (no special elections) 4,860
a. Charlie uses the cash method and calendar year for tax purposes. Calculate Charlie’s gross income for the current year.