Henry is an employee of Argus Corp. His Fringe benefits for the current year inc

Question

Henry is an employee of Argus Corp. His Fringe benefits for the current year included:

2500 contributed by Argus to his qualified deferred compensation retitrement plan. this year, the retirement plan earned 600 in intrest and dividend income. Henry received no distributions from this plan

a 500000 face value group term life insurance policy for which Argus paid premiums of 650. henry is a key employee and it is discriminatory plan. The uniform monthly premium for 1000 of group term life insurance os $.15

the use of a company owned autombile. the annual lease value of this car is 15,000. Henry used it 70% of the time (and miles) for personal use and 30% for business use

free parking in the company parking lot (values at 100 per month)

How much musy Henry include in gross income

a zero

b 10,575

c 10,568

d 11,150

Explanation / Answer

The Answer is "D"

D. 11150

Solution :-

= $650 + ($15000*70%)

= $650 + 10500

= $11150

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