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Sprint令 2:27 PM イ 45%) 9 blackboard9.wju.edu 35, A taxpayer works in a foreign country beginning August 1, 2014 through May 14, 2016. 1If the taxpayer’s foreign earned income in 2016 ta leap year) is $55,44O. then the taxpayer’s foreign earned ineome exclusion Eor 2016 : a. $0 b. $37,365 955.440 $63,935 e $101,300 Answer 36. A company’s gross profit percentage is 30%. The company offers a 25% qualified employee discount to its key employees and a 15% discount to all other employees. If Kat, a key enployee, and Trish, a non key nonhighly paid employee each purchase $100 worth of company goods. the anount Kat and Trish wil1 inelude in gross income is a. $25 and $15, respectively. b. $10 and 50, respectively c. $15 and $15, respectively d. 925 and 0. respectively e. $10 and $10, respectively. Answer 37. A corporation provides its employees with health insurance coverage. The preniuns for each employee are $10,000 a year. Which of the following statements is correct if the corporation’s plan discriminates in favor of its highly paid employees a. The highly paid employees wil1 be taxed on the $10,000 of tringe benefits they receive. but the non-highly paid employees w511 not be taxed on the $10,000. b. l nployees will be taxed on the $10,000 of fringe benetits they receive c. The non-highly paid employees wi11 be taxed on the $10,000 of fringe benefits they receive, but the highly paid employees will not be taxed on the $10,000 d. None of the employees will be taxed on the $10,000 of fringe benefits they receive. e. The corporation cannot provide health insurance coverage if its plan discriminates in favor of highly paid employees Answer 1 38. A company offers its employee, Vince (age 49)$75,000 of group term life insurance coverage. The annual premium paid is $125. The conpany pays the entire premium. According to the Uniform Premium Table, the nonthly anount for each $1,000 of excess coverage for soneone 49 years old is .15. I Vince is not a key-employee, the taxable amount of this fringe benefit is:
Expert Answer
35) The Answer is B
Because the Maximum limit for foreign earned exclusion was 101300 $ for 2016
As Taxpayer worked for 135 qualifying days in 2016, the maximum limit will be based on those days calculated as follows
101300*135/366= $ 37365
So lower of S37365 or $55440 will be the exclusion amount.
37) The answer E
Because the corporation cannot provide any insurance coverage that discriminate in favor of highly paid employees. As such employees must have to include such benefits in their gross income.
