Reference no: EM132676331

Question - Susan is an auditor at a small public practice accounting firm, Smith & Warren LLP, and receives the following during the year:

Salary: $80,000

Holiday gift basket: $350 value

Annual membership at local gym: $1,750 value (Susan uses this membership for personal use only)

Life insurance premiums paid by employer: $1,100

Private health care insurance premiums paid by employer: $975

In addition, Susan incurred the following expenses during the year, for which she was not reimbursed:

CPA Professional Dues (professional status is required by statute for auditors): $1,500

Travel expenses (incurred to perform audits of out-of-town clients of the firm): $950

Required - Compute the correct amount of net employment income for Susan?