Comprehensive Problem 5-73 (LO 5-1, LO 5-2, LO 5-3) (Algo)

Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf.

Salary payments$128,500Contributions to qualified pension plan17,100Qualified health insurance premiums7,700Year-end bonus16,300Annual director's fee13,300Group-term life insurance premiums (face value $40,000)1,240Whole life insurance premiums (face value $100,000)2,030Disability insurance premiums (no special elections)4,780

a.Charlie uses the cash method and calendar year for tax purposes.Calculate Charlie's gross income for the current year.