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Ignore your answer for part a. If you are told that the actual tax liability is lower than the amount calculated using the tax rate

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Ignore your answer for part a. If you are told that the actual tax liability is lower than the amount calculated using the tax rate schedule, what does that tell you about the items included in taxable income? You've received two job offers. Assume you have a 24% marginal tax rate Option 1: Work at the corporate office, which provides you with access to the company gym (assume it qualifies as a non-taxable fringe benefit). Equivalent gym access would cost $3,000. Option 2: Work at a remote site that would pay an additional $10,000. However, it would involve an additional 2 hour daily commute, and $500 in additional fuel costs for the year. Required: Indicate which option (1 or 2) yields the higher incremental after-tax payoff

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