Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives
Question:
Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year:
Salary: $80,000
Holiday gift basket: $350 value
Annual membership at local gym: $1,750 value (Susan uses this membership for personal use only)
Life insurance premiums paid by employer: $1,100
Private health care insurance premiums paid by employer: $975
In addition, Susan incurred the following expenses during the year, for which she was not reimbursed:
CPA Professional Dues (professional status is required by statute for auditors): $1,500
Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950
Which of the following is the correct amount of net employment income for Susan?
A). $80,400
B). $79,650
C). $82,850
D). $80.750rnrn
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany