Problem 9-8 Calculating the Amount of Disability Benefits [LO7] Kennedi Stapleton, a widow, has take-home pay of $5,400 a month. Her disability insurance coverage replaces 70 percent of her earnings after a 90-day (3-month) waiting period. a. What amount would she receive in disability benefits if an illness kept Kennedi off work for 270 days (9 months)? (Omit the "$* sign in your response.) Disability benefits b. What if her disability started when she was age 20 and was severe enough that it lasted until she was 50 years old? (Omit the "$" sign in your response.) Disability benefits

Problem 9-8 Calculating the Amount of Disability Benefits [LO7] Kennedi Stapleton, a widow, has take-home pay of $5,400 a month. Her disability insurance coverage replaces 70 percent of her earnings after a 90-day (3-month) waiting period. a. What amount would she receive in disability benefits if an illness kept Kennedi off work for 270 days (9 months)? (Omit the "$* sign in your response.) Disability benefits b. What if her disability started when she was age 20 and was severe enough that it lasted until she was 50 years old? (Omit the "$" sign in your response.) Disability benefits

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter9: Insuring Your Health

Section: Chapter Questions

Problem 7FPE

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Harvey Cook, 45, is a recently divorced father of two children, ages 10 and 7. He currently earns $95,000 a year as an operations manager for a utility company. The divorce settlement requires him to pay $1,500 a month in child support and $400 a month in alimony to his ex-wife. Harvey is now renting an apartment, and the divorce settlement left him with about $100,000 in savings and retirement benefits. His employer provides a $75,000 life insurance policy. Harvey’s ex-wife is currently the beneficiary listed on the policy. What advice would you give to Harvey? What factors should he consider in deciding whether to buy additional life insurance at this point in his life? If he does need additional life insurance, what type of policy or policies should he buy? Use Worksheet 8.1 to help answer these questions for Harvey.
LO.2 Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her was 18,000 (300 per day). Medicare paid 8,500 toward the cost of her stay. Belinda also received 5,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is 370. What is the effect on Belindas gross income?
Question 18 Sean was negotiating his salary and benefit package with South Beach Hospital. First, South Beach offered Sean a salary of $75,000. Sean and his wife, Rachelle, had a baby last year and were paying $2,000 per month for day care costs. Assume their daycare costs have no tax benefit, Knowing the hospital had an onsite daycare, Sean asked South Beach for a salary of $60,000 and fully paid daycare at their on-site daycare. If Sean and Rachelle are in the 25% tax bracket, what is their after-tax savings per year if South Beach agrees to Sean's request? C A) $6,750 C B) $24,000 C C) $12,75so C D) $18,750
Question 13 11. During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a part- time position, how much of their allotted $12,000 yearly Social Security payments would they receive? Assume $12,000 is the amount after deducting the early withdraw penalty. Question 14 12. From the question above, now assume the individual is 71 years old. How much of the yearly $12,000 would they receive while still earning $23,000 from their part-time position? Question 15 13. At retirement age in 2020, an individual has an average yearly indexed income of $40,000. How much would their monthly Social Security check be worth using the PIA formula? *Do not use dollar signs*
Question 56 The probability that a 37-year-old white male will live another year is .99828. What premium would an insurance company charge to break even on a one-year $1 million term life insurance policy? Break-even $_______
Problem #5 Samantha Montgomery (age 42) is employed by Canon Company and is paid a salary of $62,430. She has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer the following for Montgomery: a. What is the maximum that she can contribute into this retirement fund? $ b. What would be the company's contribution? $ c. What would be her weekly take-home pay with the retirement contribution deducted (married filing jointly, wage-bracket method, and a 2.3% state income tax on total wages)? $_ d. What would be her weekly take-home pay without the retirement contribution deduction? $
Problem 7-25 Low-Income Retirement Plan Contribution Credit (LO 7.9) George and Amal file a joint return in 2021 and have AGI of $38,200. They each make a $1,600 contribution to their respective IRAS. Assuming that they are not eligible for any other credits, what is the amount of their Saver's Credit?
Problem 9-5 Estimated Payments (LO 9.2) Sherina Smith (Social Security number 785-23-9873) lives at 536 West Lapham Street, Milwaukee, WI 53204, and is self-employed for 2021. She estimates her required annual estimated income tax payment for 2021 to be $7,968. She was required to pay $166 when she timely filed her prior year tax return. Complete the first quarter voucher below for Sherina for 2021. Form 1040-ES Payment Voucher 1 Department of the Treasury 2021 Estimated Tax Internal Revenue Service OMB No. 1545-0074 Calendar year-Due April 15, 2021 File only if you are making a payment of estimated tax by check or money order. Mail this voucher with your check or money order payable to "United States Treasury." Write your Amount of estimated tax you are paying social security number and "2021 Form 1040-ES" on your check or money order. Do not by check or Dollars Cents send cash. Enclose, but do not staple or attach, your payment with this voucher. money order.
Use Figure 12.15 as a reference to answer the following questions. A. If an employee makes $1,400 per month and files as single with no withholding allowances, what would be his monthly income tax withholding? B. What would it be if an employee makes $2,500 per month and files as single with two withholding allowances?
Word Problem 12-28 (Algo) [LU 12-2 (2)] Earl Ezekiel wants to retire in San Diego when he is 65 years old. Earl is now 51. He believes he will need $370,000 to retire comfortably. To date, Earl has set aside no retirement money. Assume Earl gets 6% interest compounded semiannually. How much must Earl invest today to meet his $370,000 goal? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. Investment
EB 15. LO 12.5 An employee and employer cost-share 401(k) plan contributions, health insurance premium payments, and charitable donations. The employer also provides annual vacation compensation equal to ten days of pay at a rate of $30 per hour, eight-hour work day. The employee makes a gross wage of $3,000 monthly. The employee decides to use five days of vacation during the current pay period. Employees cover 30% of the 401(k) plan contribution and 30% of the health insurance premium. The employee also donates 1% of gross pay to a charitable organization. A. What would be the employee's total benefits responsibility if the total 401(k) contribution is $700 and the health insurance premium is $260? B. Include the journal entry representing the payroll benefits accumulation for the employer in the month of March, if the employer matches the employee's charitable donation of 1%.
Problem 7-28 You contribute $1,500 annually to a retirement account for eight years and stop making payments at the age of 40. Your twin wered er (or sister... whichever applies) opens an account at age 40 and contributes $1,500 a year until retirement at age 65 (25 years). You both earn 10 percent on your investments. How much can each of you withdraw for 25 years (that is, ages 66 through 90) from the retirement accounts? Use Appendix A, Appendix C, and Appendix D to answer the question. Round your answers to the nearest dollar. You can withdraw $ Your twin can withdraw $