In the current year, Jill, age $35,$ received a job offer with two alternative compensation packages to choose from. The first package

offers her a $$95,000$ annual salary with no qualified fringe benefits and, requires her to pay $$6,000$ a year for parking and to purchase

life insurance at a cost of $$3,500.$ The second package offers an $$82,500$ annual salary, employer$-$provided health insurance, annual

free parking $($worth $$580$ per month$),$ $$200,000$ of life insurance $($purchasing on her own would have been $$3,500$ annually$),$ and free

flight benefits $($she estimates that it will save her $$7,500$ per year$).$ If Jill chooses the first package, she will purchase the health and life

insurance benefits herself at a cost of $$3,500$ annually after taxes and spend another $$7,500$ in flights while traveling. Assume her

marginal tax rate is $32$ percent. $($Use Exhibit $12-8.)$

Required:

a$1.$ Which compensation package should she choose?

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

b$1.$ Assume the first package offers a $$126,000$ salary instead of a $$95,000$ salary, and the other benefits and costs are the same.

Which compensation package should she choose?

b$2.$ How much would she benefit in after$-$tax dollars by choosing this package?

Complete this question by entering your answers in the tabs below.

How much would she benefit in after$-$tax dollars by choosing this compensation package instead of the alternative package?

Note: Round your intermediate computations to the nearest whole dollar amount.

After$-$tax benefit