Charlie was hired by Ajax this year as a corporate executive and a member of the
ID: 2424349 • Letter: C
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.
Charlie uses the cash method and calendar year for tax purposes. Calculate Charlie’s gross income for the current year.
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.
Explanation / Answer
Gross Income is calculated before any deduction from Total Income.
Amount in ($) Salary Payment 82000 Contribution to Qualifies Pension Plan 11200 Qualified Health Insurance Premium 7600 Year End Bonus 19500 Annual Director 's Fees 15100 Life Insurance Premium Group Term 980 Whole life insurance premiums 1810 Disability Insurance Premium 4600 Gross Income 142,790