Bob,an Employee of Modern Corp

question 116

Multiple Choice

Bob,an employee of Modern Corp. ,receives a fringe benefit (in lieu of a salary increase) of $1,000.Bob is in a 33% tax bracket.The fringe benefit is nontaxable to Bob.If he had instead paid for the benefit out of his own money,the cost would not be deductible.Bob's after-tax savings from receiving the tax-free benefit is

• A)$0.
• B)$333.
• C)$667.
• D)$1,000.

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Definitions:

Mutually Exclusive Codes

Codes in a classification system that categorize information so that each item is assigned to only one category that does not overlap with others.

Combination Code

A system of symbols or numbers used to gain access or unlock something, typically requiring a specific sequence.

ICD-10-CM

The International Classification of Diseases, Tenth Revision, Clinical Modification; a system used by health care providers to classify and code all diagnoses, symptoms, and procedures recorded in conjunction with hospital care in the United States.

Diagnoses

The identification of the nature and cause of a health condition through examination of symptoms and tests.