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13. LO.2, 4 Eagle Life Insurance Company pays its employees $0.30 per mile for driving their personal automobiles to and from work. The company reimburses
13. LO.2, 4 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 collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass. a. What are the effects of the above on Tom's and Mason's gross income? 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
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