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:

Illustrators

Visual aids or gestures used to complement verbal communication, often enhancing the understanding or retention of the message.

Eye Contact

The act of two individuals looking directly into each other's eyes, often conveying interest, attention, or confidence.

Cultural Uncomfortable

The feeling of unease or awkwardness that can occur when experiencing or interacting with cultures different from one's own.

Illustrator

A professional or tool specializing in creating visual illustrations or artwork, often used in books, magazines, websites, and other media.