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:

Intensity

The degree of strength, force, or concentration of something, often used in contexts of light, sound, or emotions.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the inherent pleasure and satisfaction derived from the activity itself.

Primary Drives

Basic internal motivating forces in psychology, such as hunger and thirst, which drive behavior for survival.