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    nesrin's Avatar
    nesrin Posts: 1, Reputation: 1
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    #1

    Feb 16, 2010, 08:28 AM
    James did not receive in 2009 $6,000 of his $72,000 salary because in December 2008 h
    James, a cash basis taxpayer, received the following compensation and fringe benefits in 2009:

    Salary $66,000
    Disability income protection premiums 3,000
    Long-term care insurance premiums 4,000

    James did not receive in 2009 $6,000 of his $72,000 salary because in December 2008 his employer advanced him $6,000 on his 2009 salary. The employer made the salary advance so that James could pay his son’s college tuition that was due in December 2008. The wage continuation insurance is available to all employees and pays the employee three-fourths of the regular salary if the employee is sick or disabled. The long-term care insurance is available to all employees and pays $150 per day towards a nursing home or similar facility. What is James’s gross income from the above?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Feb 16, 2010, 08:46 AM

    Hello nesrin. This sounds like a homework problem to me. Per the rules of this site, we will not simply do your homework for you, although we will provide guidance and suggestions. So, please take a shot at answering this question yourself, let us know what you think the answer is, and why, and then we will be happy to check it for you.
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