Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. eagle life insurance company pays its employees $0

Eagle Life Insurance Company pays its employees $0.30 per mile for driving their personal automobiles...

90.2K

Verified Solution

Question

Accounting

image Eagle Life Insurance Company pays its employees $0.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost of a pass. Tom, in his Mazda 2-seat Roadster, collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass. If an amount is zero, enter "0". a. What are the effects of the $100 reimbursement on Tom's and Mason's gross income? Tom and Mason the $100 in gross income. Feedback Check My Work The intent of the exclusion for qualified transportation fringe is to encourage the use of mass transit for commuting to and from work. b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is $0.30 per mile. What are Tom's and Mason's after-tax costs of commuting to and from work? Tom's after-tax cost is $ X and Mason's after-tax cost is $ for commuting to and from work

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students