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Check my work In the current year, Jil, age 35, received a job offer with two alternative compensation packages to choose from. The first package
Check my work In the current year, Jil, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her a $90,000 annual salary with no qualified fringe benefits, employer provided health Insurance, and requires her to pay $3,500 a year for parking and to purchase life insurance at a cost of $1,000. The second package offers an $80,000 annual salary, employer-provided health insurance, annual free parking (worth $320 per month) $200,000 of life insurance (purchasing on her own would have been $1,000 annually), and free flight benefits (she estimates that it will save her $5,000 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,000 annually after taxes and spend another $5,000 in flights while traveling. Assume her marginal tax rate is 32 percent (Use Exhibit 12-08.) Required: a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. Regai Rega2 Reqb1 Reg b2 How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative packag (Round your intermediate computations to the nearest whole dollar amount.) After-tax benefit Check my work In the current year, Jil, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her a $90,000 annual salary with no qualified fringe benefits, employer provided health Insurance, and requires her to pay $3,500 a year for parking and to purchase life insurance at a cost of $1,000. The second package offers an $80,000 annual salary, employer-provided health insurance, annual free parking (worth $320 per month) $200,000 of life insurance (purchasing on her own would have been $1,000 annually), and free flight benefits (she estimates that it will save her $5,000 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,000 annually after taxes and spend another $5,000 in flights while traveling. Assume her marginal tax rate is 32 percent (Use Exhibit 12-08.) Required: a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. Regai Rega2 Reqb1 Reg b2 How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative packag (Round your intermediate computations to the nearest whole dollar amount.) After-tax benefit
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