Question
77. Reg and Rhonda are married and have 2 children, ages 5 and 3. Rhonda has not worked outside the home since the birth of
77. Reg and Rhonda are married and have 2 children, ages 5 and 3. Rhonda has not worked outside the home since the birth of their first child. Now that the children are older, she would like to return to work and has a job offer that would pay her $27,000 per year. For her to take the job, the children will have to be put into a day-care center. The day-care center will cost $500 per month. Given the high cost of the day-care center, Reg and Rhonda are wondering whether it is worth it for Rhonda to take the job. They project their current-year taxable income (without considering Rhondas job) as $50,000. Write a letter to Rhonda explaining how much additional cash (after taxes) she will earn if she accepts the job. You should include in your letter the nontax factors Rhonda should consider before taking the job.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started