James Martin received the following compensation and fringe benefits from his employer during 2007:

Salary

$50,000

Year-end bonus

10,000

Medical insurance premiums paid by employer

1,000

Reimbursement of qualified moving expenses

5,000

What amount of the preceding payments should be included in Martin’s 2007 gross income?

  1. $60,000
  2. $61,000
  3. $65,000
  4. $66,000