Nicole 's employer, Poe Corporation, provides her with an automobile allowance of $20,000 every other year Her marginal tax rate is 30 percent Poe Corporation has a marginal tax rate of 35 percent Answer the following questions relating to this fringe benefit a What is Nicole 's after tax benefit i...

a Nicoles after tax benefit is 14000 calculated as follows Description Amount Explanation 1 ...

Nicole's employer, Poe Corporation, provides her with an automobile allowance of $20,000 every other year. Her marginal

Question:

Nicole's employer, Poe provides her with an automobile allowance of $20,000 every other year. Her marginal tax rate is 30 percent. Poe has a marginal tax rate of 35 percent. Answer the following questions relating to this fringe benefit.
a. What is Nicole's after-tax benefit if she receives the allowance this year (ignore FICA taxes)?
b. What is Poe's after-tax cost of providing the auto allowance?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...