Isabel, Age 51 and Single, Is an Electrical Engineer Employed

question 128

Essay

Isabel, age 51 and single, is an electrical engineer employed by Regis Corporation. Isabel's annual salary is $80,000. Regis Corporation's qualified pension plan matches employee's contributions to the plan up to 5% of the employee's annual salary. During the current year, Isabel contributes the $4,000 maximum to the plan, which is matched by Regis. Due to high cost of medical insurance, the corporation does not provide any medical insurance to its employees. Instead, it offers a flexible benefits plan that employees can use to pay for medical insurance, unreimbursed medical costs, and childcare costs. Isabel elects to have $2,500 paid into the plan. Isabel uses the plan to purchase medical insurance costing $2,200. Isabel spends an additional $150 from the plan on eyeglasses and dental costs. Regis Corporation also provides group-term life insurance at twice the employee's annual gross salary. The cost of Isabel's insurance was $600. Regis also provides engineers in Isabel's department with free parking in the company's parking garage. Non-employees pay $3,060 per year to park in the garage. Isabel's $250 dues to the Electrical Engineer's Association and her $1,560 health club membership are also paid by Regis. Compute Isabel's taxable compensation from Regis Corporation.

---

Definitions:

Willful Destruction By Fire

An act of intentionally setting fire to property, typically constituting a criminal offense.

Forgery

The act of falsely making or altering a document with the intent to defraud, such as signing another person's name to a check.

Counterfeiting

The creation of imitation products, currency, or documents with the intent to deceive or defraud by passing the fake item off as genuine.

Trademarks

Legal symbols, words, or phrases registered to represent a company or product, used to distinguish them from competitors.