Dow, 42, is a manager for Winter Company. In addition to his 2019 $87,000 salary, he receives the following benefits from Winter during the current year:

Winter pays all its employees' health and accident insurance. Premiums paid by Winter for Dow's health insurance are $1,900.

Winter provides all employees with group term life insurance coverage equal to their annual salary. Premiums on Dow's $87,000 in coverage are $870.

Winter has a flexible benefits plan in which employees may participate to pay any costs not reimbursed by their health insurance. Dow has $2,650 withheld from his salary under the plan. His actual unreimbursed medical costs are $3,360. Winter pays Dow the $2,650 paid into the plan during the year.

All management-level Winter employees are entitled to employer-provided parking. The cost of Dow's parking in a downtown garage is $3,300 for the year.

Winter pays Dow’s $100 monthly membership fee to a private health club located in the building in which Dow works. Dow uses the club during his lunch time and on weekends.

Click here to refer to Table 4-1: Gross Income from Group Term Life Insurance in Excess of $50,000.

If required, round your answer to the nearest cent.

Dow has a gross income of $_______ for the current year.

 

Transcribed Image Text:

Table 4-1 Gross Income from Group Term Life Insurance in Excess of $50,000 Includable Income per $1,000 Employee's Age Monthly Annually Under 25 $.05 $ .60 25 to 29 .06 .72 30 to 34 .08 .96 35 to 39 .09 1.08 40 to 44 .10 1.20 45 to 49 .15 1.80 50 to 54 .23 2.76 55 to 59 .43 5.16 60 to 64 65 to 69 70 and older .66 7.92 15.24 1.27 2.06 24.72 Table 4-1 Gross Income from Group Term Life Insurance in Excess of $50,000 Includable Income per $1,000 Employee's Age Monthly Annually Under 25 $.05 $ .60 25 to 29 .06 .72 30 to 34 .08 .96 35 to 39 .09 1.08 40 to 44 .10 1.20 45 to 49 .15 1.80 50 to 54 .23 2.76 55 to 59 .43 5.16 60 to 64 65 to 69 70 and older .66 7.92 15.24 1.27 2.06 24.72

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