Question

Stephen, age 38, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2022: • Hospitalization insurance premiums for Stephen and his dependents. The cost of the coverage for Stephen is \$2,675 per year, and the additional cost for his dependents is \$3,600 per year. The plan has a \$3,000 deductible, but his employer contributed \$1,500 to Stephen's Health Savings Account (HSA). Stephen withdrew only \$650 from the HSA, and the account earned \$55 of interest during the year. • Insurance premiums of \$1,050 for salary continuation payments. Under the plan, Stephen will receive his regular salary in the event he is unable to work due to illness. Stephen collected \$4,400 on the policy to replace lost wages while he was ill during the year. • Stephen is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his \$1,800 tuition under a plan available to all full-time employees. For each of the following items, enter the amount to be included in Stephen's gross income. If an amount is zero, enter "0". Amount Included a. Hospitalization insurance premiums for Stephen and his dependents. b. Insurance premiums of \$1,050 for salary continuation payments. c. The \$4,400 Stephen collected on the salary continuation policy to replace lost wages while he was ill during the year. d. Tuition reimbursement under a plan available to all full-time employees. Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental agreement, Shanna pays \$25,400 rent on April 1, 2022, for the 12 months ending March 31, 2023. Do not round any division. a. How much is Shanna's deduction for rent expense in 2022?

Stephen, age 38, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2022:
• Hospitalization insurance premiums for Stephen and his dependents. The cost of the coverage for Stephen is
\$2,675 per year, and the additional cost for his dependents is \$3,600 per year. The plan has a \$3,000
deductible, but his employer contributed \$1,500 to Stephen's Health Savings Account (HSA). Stephen withdrew
only \$650 from the HSA, and the account earned \$55 of interest during the year.
• Insurance premiums of \$1,050 for salary continuation payments. Under the plan, Stephen will receive his
regular salary in the event he is unable to work due to illness. Stephen collected \$4,400 on the policy to
replace lost wages while he was ill during the year.
• Stephen is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his
\$1,800 tuition under a plan available to all full-time employees.
For each of the following items, enter the amount to be included in Stephen's gross income.
If an amount is zero, enter "0".
Amount Included
a. Hospitalization insurance premiums for Stephen and his dependents.

b. Insurance premiums of \$1,050 for salary continuation payments.

c. The \$4,400 Stephen collected on the salary continuation policy to replace lost wages
while he was ill during the year.

d. Tuition reimbursement under a plan available to all full-time employees.

Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental
agreement, Shanna pays \$25,400 rent on April 1, 2022, for the 12 months ending March 31, 2023.
Do not round any division.
a. How much is Shanna's deduction for rent expense in 2022?

Stephen, age 38, is an officer of Blue Company, which provides him with the following nondiscriminatory fringe benefits in 2022:
• Hospitalization insurance premiums for Stephen and his dependents. The cost of the coverage for Stephen is
$2,675 per year, and the additional cost for his dependents is $3,600 per year. The plan has a $3,000
deductible, but his employer contributed $1,500 to Stephen's Health Savings Account (HSA). Stephen withdrew
only $650 from the HSA, and the account earned $55 of interest during the year.
• Insurance premiums of $1,050 for salary continuation payments. Under the plan, Stephen will receive his
regular salary in the event he is unable to work due to illness. Stephen collected $4,400 on the policy to
replace lost wages while he was ill during the year.
• Stephen is a part-time student working on his bachelor's degree in engineering. His employer reimbursed his
$1,800 tuition under a plan available to all full-time employees.
For each of the following items, enter the amount to be included in Stephen's gross income.
If an amount is zero, enter "0".
Amount Included
a. Hospitalization insurance premiums for Stephen and his dependents.

b. Insurance premiums of $1,050 for salary continuation payments.

c. The $4,400 Stephen collected on the salary continuation policy to replace lost wages
while he was ill during the year.

d. Tuition reimbursement under a plan available to all full-time employees.

Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from Janice. As part of the rental
agreement, Shanna pays $25,400 rent on April 1, 2022, for the 12 months ending March 31, 2023.
Do not round any division.
a. How much is Shanna's deduction for rent expense in 2022?

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