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:

Grandchildren

The children of one's own children, representing a subsequent generation within a family that strengthens lineage continuity and familial bonds.

Primary Responsibility

The main duty or obligation one is held accountable for in a job, project, or role.

Grandparents

The parents of one's parents, often playing significant roles in family structure and child rearing.

Divorce

The legal dissolution of a marriage by a court or other competent body, ending the marital bond between two individuals.