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 $90,000 annual salary with no qualified fringe benefits, employer provided health insurance, and requires her to pay $3,500 a year for parking and to purchase life insurance at a cost of $1,000. The second package offers an $80,000 annual salary, employer-provided health insurance, annual free parking (worth $320 per month), $200,000 of life insurance (purchasing on her own 1 would have been $1,000 annually), and free flight benefits (she estimates that it will save her $5,000 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,000 annually after taxes and spend another $5,000 in flights while traveling. Assume her marginal tax rate is 32 percent. (Use Exhibit 12-08.) Required: a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. Req al Req a2 Req b1 Req b2 Which compensation package should she choose? OPackage 1 offers her $90,000 annual salary with no qualified fringe benefits. Package 2 offers $80,000 annual salary plus qualified fringe benefits like health and life insurance benefits, parking, flight tickets. EXHIBIT 12-8 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection Table Summary: Chart shows cost per $1,000 of life insurance protection for one month per 5-year age bracket. 5-Year Age Bracket Under 25 Cost per $1,000 of Protection for One Month a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. 25 to 29 Req al Req a2 Req b1 Req b2 How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? (Round your intermediate computations to the nearest whole dollar amount.) After-tax benefit $203.340 a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. Req al Req a2 Req b1 Req b2 $0.05 .06 30 to 34 .08 35 to 39 .09 40 to 44 .10 45 to 49 .15 50 to 54 .23 55 to 59 43 60 to 64 .66 65 to 69 1.27 70 and above 2.06 Source: Reg. $1.79-3(d)(2). Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? Package 1 offers her $100,000 annual salary with no qualified fringe benefits. OPackage 2 offers $80,000 annual salary plus qualified fringe benefits like health and life insurance benefits, parking, flight tickets. a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $100,000 salary instead of a $90,000 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? Complete this question by entering your answers in the tabs below. Req al Req a2 Req b1 Req b2 How much would she benefit in after-tax dollars by choosing this package? (Round your intermediate computations to the nearest whole dollar amount.) After-tax benefit $ 193,340