Faye Is a Marketing Manager for Healthy Corp

question 50

Essay

Faye is a marketing manager for Healthy Corp.She earns a salary of $100,000 and has received the following benefits:
• Healthy pays 75% of all employees' health and accident insurance coverage.Healthy paid $6,000 towards the cost of Faye's health insurance during the year.
• Faye participates in the cafeteria plan and had elected to have $2,000 withheld from her pay to cover the remaining cost of the health insurance premiums and an additional $1,500 to cover dental and other health care costs not paid by insurance (i.e.,funding a flexible spending account).The full $1,500 was used to pay for various qualifying medical costs.
• Healthy pays the cost of disability insurance coverage for all employees.The insurance will pay 75% of salary if employees are out of work for a significant period.The cost of Faye's premiums was $600.
• Healthy pays for the cost of veterinary insurance for all employees.The cost of coverage for Faye's dog was $400.
• Healthy pays for the cost of daycare for its employees' children.The cost for Faye's two children was $8,000.
• All employees receive a 20% discount on Healthy's products.The typical markup on their products is 25%.Faye enjoyed $1,200 of savings through the discount program.
• Faye won the manager of the year award earlier in the year and received an all-expense paid week at a desert spa valued at $3,500.
• Healthy pays Faye's annual membership dues of $500 to the American Marketing Association.
• Healthy paid for the full $2,500 cost of Faye's attendance at the American Marketing Association's annual conference in Orlando.
How much income must Faye recognize from her employment?

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Definitions:

1934 Act

Refers to the Securities Exchange Act of 1934, which governs the trading of securities in the U.S., including the establishment of the SEC.

Registration Under

The process of officially recording or enlisting something or someone under certain conditions or regulations, often related to securities laws.

1933 Act

A U.S. federal law, officially known as the Securities Act of 1933, enacted to ensure more transparency in financial statements to protect investors from fraud.

Working Capital

The difference between a company's current assets and its current liabilities, indicative of its operational liquidity.