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Required information (The following information applies to the questions displayed below_j Seiko's current salary iS 98.500. Her marginal tax rate iS 32 percent, and
Required information (The following information applies to the questions displayed below_j Seiko's current salary iS 98.500. Her marginal tax rate iS 32 percent, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply, Inc. Her friend, knowing of her interest in sports cars. tells her about a manager position at the local BMW and Porsche dealer. The new position pays only 587.100 per year. but it allows employees to purchase one new car per year at a discount of S17.700_ This discount qualifies as a nontaxable fringe benefit, In an effort to keep Seiko as an employee. Idaho Office Supply Inc. Offers her a S12,400 raise. Answer the following questions about this analysis. a. What is the annual after-tax cost to Idaho Office Supply, Inc. if it provides Seiko with the S12.400 increase in salary? (Ignore payroll taxes.) b-1. Financially. which offer is better for Seiko on an after-tax basis? Car dealer's offer Current employer's Offer o Both offers b-2. By how much is the offer better for Seiko on an after tax basis (Assume that Seiko is going to purchase the new car whether she switches jobs or not.) . What salary would Seiko need to receive from Idaho Office Supply, Inc. to make her financially indifferent (after taxes) between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership? (Round your intermediate computations to the nearest dollar amount.)
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