JDD Corporation provides the following benefits to its employee, Ahmed (age 47):
|
Salary
|
$300,000
|
|
Health insurance
|
10,000
|
|
Dental insurance
|
2,000
|
|
Life insurance
|
3,000
|
|
Dependent care
|
5,000
|
|
Professional dues
|
500
|
|
Personal use of company jet
|
200,000
|
Assume the life insurance is a group-term life insurance policy that provides $200,000 of coverage for Ahmed.
a) Assuming Ahmed is subject to a marginal tax rate of 30 percent, what is his after-tax benefit of receiving each of these benefits?