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 transferred to a flexible spending account 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
A) $37,500
The $2,500 salary reduction is excluded from his taxable salary. Medical reimbursements are not taxable.
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A ________ refers to the use of the same brand in a different product line.
A. brand license B. co-brand C. product mix extension D. line extension E. brand extension
According to the CAPM, for each unit of beta, an asset's required rate of return increases by the
market's risk premium. Indicate whether the statement is true or false
) In 2018, Richard's Department Store changes its inventory method from FIFO to LIFO. Richard's uses the simplified LIFO method. Richard's year-end inventory under FIFO is as follows: 2017 - $300,000; 2018 - $350,000. The 2017 price index is 110% and the 2018 index is 120%. The 2018 layer is
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A) $19,097.
B) $20,833.
C) $22,727.
D) $50,000.
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A) All of the shareholders of an S corporation must consent to a revocation of the S election. B) A revocation of an S corporation election can be retrospective to any date. C) An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E&P. D) All of the above are true.