Bob is a 25 year old qualified carpenter who is a subcontractor to various builders. He is
Question:
Bob is a 25 year old qualified carpenter who is a subcontractor to various builders. He is earning $70,000 gross but pays $20,000 in expenses, most of his expenses are fixed expenses such as a leased car and leased equipment. Bob rents an apartment in Boston and spends the rest of his earnings of $50,000 on living and entertainment expenses. Bob has $2,000 in savings.
What can happen to Bob if he won't buy insurance?
What kind of insurance will be recommend Bob to buy and why?
Question # 2:
Jena bought a 3-month old Max (see below). Jena lives in Beacon Hill and goes to Suffolk at night. Should Jena buy a pet insurance on Max and why?
How much will be the annual premium for the insurance policy? Provide all the details and which insurance company she should choose and why?
Question # 3:
Case Study
Jane and Terry are 40 years old.. Terry is a highly paid executive earning $170,000 per year. Jane hasn't worked since having their two children aged 11 and 9 but used to work as a kindergarten teacher. They live in Newton in a house valued at $1.5M with a mortgage of $600,000. Both children attend private schools in Newton, MA. On Terry's income they are able to comfortably afford living expenses, school fees and the mortgage and have accumulated $50,000 in savings.
What kind of insurance will be recommend for Jane and Terry and why?
Question # 4 :
Marine, age 25, is a self-employed plumber in Needham, MA. A few months ago, she hired her sister, age 20, to help in the business.
Marine want to accumulate a retirement fund and decides to adopt a 401(K) plan to fund her retirement.
Marine's net earnings(after certain adjustments) are $80K.
1. What is the maximum tax-deductible contribution Marine can make to the 401(K) plan ?
2. Doe Marine have to include her sister in her 401(K) plan.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill