Ellen is a single taxpayer who is considering two job offers. Ellen considers both accounting firms to be equally desirable in terms of the opportunities for long-term career growth . But the companies have significantly different compensation and benefits packages. She has come to you for a recommendation. Below is a summary of the benefits packages offered by each firm. In addition to salary, Mahindra and Associates (a well-estab lished public accounting firm with several offices and high-profile clients) also offers several additional fringe benefits to its emp loyees. In particular, Ellen believes that the high-quality health insurance coverage is an attractive benefit. In addition, she believes that she will also take advantage of the educationa l assistance that the firm provides, as she hopes to pursue an additional gradu - ate degree. Below are the specifics of the compensation and benefits:

Chapter 4: Gross Income: Exclusions Chapter 4: Gross Income: Exclusions ate degree. Below are the specifics of the compensation and benefits: Eulucalivilal assistance: Maximum benefit 8,000 The other firm that Ellen is considering, Glenmark and Associates (a relatively new firm with one office that focuses on new technology companies), offers a higher salary, but their fringe benefits are not as attractive. Below are the specifics of their compensation and benefits: Salary $72,000 Health insurance coverage Annual estimated premiums 4,100 (Employer pays 70% of premiums/employee pays 30% of premiums) Educational assistance: Maximum benefit 3,500 The health insurance plans offered by Mahindra and Glenmark are similar in terms of coverage, out-of-pocket costs, etc. (In other words, the quality of coverage is the same under each plan.) Ellen believes that her actual tuition costs for the graduate classes will be $9,500. Determine which offer is best for Ellen to accept, assuming that she will be in the 25% marginal tax bracket. TAX FORM/RETURN PREPARATION PROBLEMS Short Tax Form. A. J. Paige, Social Security number 111-22-3333, is the vice president of marketing (Australia) for International Industries, Inc. (III). III is headquartered at 123 Main