Summary Problem: Ralph, Age 44, Is an Account Executive for Cobb

question 155

Essay

Summary Problem: Ralph, age 44, is an account executive for Cobb Advertising, Inc. Ralph's annual salary is $90,000. Other benefits paid by Cobb Advertising were:
In addition to the benefits above, Cobb Advertising has a qualified pension plan into which employees can contribute (and Cobb matches) up to 5% of their annual salary. Ralph contributes the maximum allowable to the plan.
Ralph has never been able to itemize his allowable personal deductions (i.e., he always uses the standard deduction). In 2018, Ralph receives a refund of $300 of his 2017 State income taxes and a 2017 Federal tax refund of $400.
Other sources of income:
$$\begin{array} { l r } \text { Health and Accident Insurance Premiums } & \$ 1,500 \\\text { Group-Term Life Insurance Policy ( } \$ 135,000 \text { of coverage) } & 250 \\\text { Country Club Dues } & 3,660 \\\text { Dues to professional organizations, trade journals } & 550 \\\text { Parking space in downtown garage } & 3,300\end{array}$$
Required: Compute Ralph's 2018 gross income.

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Definitions:

Hydrogen Atoms

The simplest type of atom, consisting of one proton and one electron, fundamental in the structure of all organic compounds.

Molar Heat

The amount of heat absorbed or released by one mole of a substance during a phase change, without a change in temperature.

Combustion

A chemical process involving the rapid oxidation of substances, resulting in the release of heat, light, and products like CO2 and water.

Cyclopentane

A cycloalkane with a five-carbon ring structure, noted for being a more flexible ring compared to other cycloalkanes due to less strain.