Tim Earns a Salary of $40,000

question 71

Multiple Choice

Tim earns a salary of $40,000.This year,Tim's employer establishes a cafeteria plan under which Tim signed a salary reduction of $2,500 for which $1,500 is to cover his health insurance premiums and $1,000 is available to reimburse medical expenses.During the year,he is reimbursed $900 for medical expenses.What is the total taxable to Tim this year?

• A)$37,500
• B)$37,600
• C)$38,400
• D)$40,000

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Definitions:

Wind

Air in motion relative to the surface of the earth, playing a significant role in weather patterns and climate.

Air Pollution

The presence of harmful or excessive quantities of substances, including gases, particulates, and biological molecules in the atmosphere.

Pollutants

Substances that contaminate air, water, or soil, potentially causing harm to human health, the environment, or both.

Emissions

The release of substances, such as gases, liquids, or particulates, into the air or water, often associated with pollution from industrial activities or vehicles.