5. Rachel receives employer provided healthinsurance. The employer's cost of the health insurance is $5,500annually. What is her employer's after-tax cost of providing thehealth insurance, assuming that the employer's marginal tax rate is35 percent and is profitable?
MULTIPLE CHOICE
$0
$3,575
$4,198
$5,500
8. Meg works for Freedom Airlines in theaccounts payable department. Meg and all other employees receivefree flight benefits (for the employee, family, and 10 free buddypasses for friends per year) as part of its employee benefitspackage.
If Meg uses 30 flights with a value of $14,220 this year, how muchmust she include in her compensation this year?
Amount included
?
9. Which of the following statements is trueregarding equity compensation?
MULTIPLE CHOICE
a. Restricted stock maintains value to an employee even when themarket price decreases after grant date.
b. NQOs maintain value to an employee even when the market pricedecreases after grant date.
c. Employees usually prefer NQOs rather than ISOs.
d. The difference between the market value and the strike priceis treated as ordinary income on the exercise date for ISOs.
10. One purpose of Form W-2 is to determine anemployeeâs withholding during the year.
True or false?
5. Rachel receives employer provided healthinsurance. The employer's cost of the health insurance is $5,500annually. What is her employer's after-tax cost of providing thehealth insurance, assuming that the employer's marginal tax rate is35 percent and is profitable?
MULTIPLE CHOICE
$0
$3,575
$4,198
$5,500
8. Meg works for Freedom Airlines in theaccounts payable department. Meg and all other employees receivefree flight benefits (for the employee, family, and 10 free buddypasses for friends per year) as part of its employee benefitspackage.
If Meg uses 30 flights with a value of $14,220 this year, how muchmust she include in her compensation this year?
|
9. Which of the following statements is trueregarding equity compensation?
MULTIPLE CHOICE
a. Restricted stock maintains value to an employee even when themarket price decreases after grant date.
b. NQOs maintain value to an employee even when the market pricedecreases after grant date.
c. Employees usually prefer NQOs rather than ISOs.
d. The difference between the market value and the strike priceis treated as ordinary income on the exercise date for ISOs.
10. One purpose of Form W-2 is to determine anemployeeâs withholding during the year.
True or false?
