Marge, Age 35, Is an Employee of Troy, Inc

question 66

Multiple Choice

Marge, age 35, is an employee of Troy, Inc. Her annual salary is $50,000. After considering the following list of benefits provided Marge, determine her gross income for the year. • Marge has $2,000 of her salary withheld and paid into the company's qualified pension plan. The company matches the contribution at the rate of $.50 for each $1.00 paid in.
• Group-term life insurance policy at twice her annual salary paid by the company. Premium cost is $1.08 per $1,000 of coverage.
• Health and accident insurance policy costing $1,500 paid by the company.
• Marge elects to have $1,800 of her salary paid into a flexible benefits plan to cover childcare costs. She incurs $2,100 of childcare costs during the year.

• A) $44,700
• B) $44,754
• C) $46,254
• D) $48,054
• E) $50,000

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Definitions:

Common Stock Account

An equity account that represents the ownership interest of the shareholders in a company.

Common Stock Dividend Distributable

The amount of dividends declared by a company but not yet paid to common stockholders.

Equity Account

An account representing the owner's interest or stake in a company.

Corporation

A legal entity formed by individuals, stockholders, or shareholders, with its own rights and liabilities separate from those of its members.