Andres Has Received the Following Benefits This Year Besides These Benefits Andres Missed Work for Two Months Due

question 95

Essay

Andres has received the following benefits this year. $$\begin{array} { l r } \text { Salary } & \$ 92,000 \\\text { Contribution to qualified pension plan } & 10,200 \\\text { Qualified health insurance premiums } & 8,400 \\\text { Year-end bonus } & 15,000 \\\text { Group-term life insurance premiums (face } = \$ 40,000 ) & 1,750 \\\text { Whole life insurance premiums (face } = \$ 100,000 ) & 2,420 \\\text { Disability insurance premiums } & 1,800\end{array}$$ Besides these benefits Andres missed work for two months due to an illness. During his illness Andres received $6,500 in sick pay from a disability insurance policy. Assume Andres has disability insurance provided by his employer as a nontaxable fringe benefit. What amount, if any, must Andres include in gross income this year?

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Definitions:

Lab Orders

Refers to the requisitions or requests made by healthcare providers for laboratory tests to be performed.

CD-RW

Compact Disc-ReWritable, a type of CD disc that allows users to write, erase, and rewrite data multiple times.

DVD+R

A recordable DVD format with a storage capacity of 4.7 GB, allowing users to write data to the disc once.

External Hard Drive

A portable storage device used for backing up data from a computer or transferring files between computers, and is external to the internal hard drive.