What are the tax benefits of a fringe benefit such as employer-supplied life and health insurance? What are the nontax costs associated with such a program? Why would some employees prefer salary to the insurance program?
Answer to relevant QuestionsWhen is it efficient for the employer to reimburse the employee for business meals and entertainment expenditures? How does the 2% limitation on miscellaneous itemized deductions affect the decision? What nontax factors ...In December 1992, Michael Eisner and the late Frank Wells of Walt Disney exercised a large number of stock options. The facts are summarized here. • In 1984, Michael Eisner became chairman of Walt Disney and Frank Wells ...Suppose you are employed by MS Corporation. In year 1, you received nonqualified employee stock options (NQOs) to acquire 10,000 shares of MS’s stock at an Exercise price of $40 share. On that date, the stock traded at $35 ...What factors are relevant to determining whether retiree medical benefits should be funded in advance? What role does the actuary play in deciding on whether the fund is overfunded or underfunded? How does this role affect dynamic tax-planning strategies for the pension fund?
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