In 2016, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $116,000 annual salary with no qualified fringe benefits, requires her to pay $4,700 a year for parking, and pay her life insurance premiums at a cost of $1,400. The second package offers $106,000 annual salary, employer-provided health insurance, annual free parking (worth $335 per month), $212,000 of life insurance (purchasing on her own would have been $1,400 annually), and free flight benefits (she figures that it will save her $6,100 per year). If Jill chooses the first package, she would purchase the health and life insurance benefits herself at a cost of $6,300 annually after taxes and spend another $6,100 in flights while traveling. Assume her marginal tax rate is 28 percent. (Use Exhibit 12-10.) (Round your intermediate computations to the nearest whole dollar amount.)

a-1. Which compensation package should she choose? Package 1 offers her $116,000 annual salary with no qualified fringe benefits. Package 2 offers $106,000 annual salary plus health and life insurance benefits.

a-2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the other compensation package?