Larry, age 32, works for Horizon Corporation. His annual salary is $60,000. Horizon provides the following benefits

Question:

Larry, age 32, works for Horizon His annual salary is $60,000. Horizon provides the following benefits to all employees:
• Group term life insurance (each employee is provided with $80,000 worth of coverage that costs Horizon $120 per employee)
• Medical insurance (the cost of Larry's policy is $3,900)
• Qualified pension plan (Horizon matches employee contributions up to $2,500. Larry contributes 7 percent of his salary to the plan.)
• Qualified award program (Larry received a watch Horizon purchased for $100 to recognize his 5 years of service with Horizon.)
How much income must Larry recognize and how much can Horizon deduct in the current year?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...