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In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $91,000

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In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $91,000 annual salary with no qualified fringe benefits and requires her to pay $4,000 a year for parking and to purchase life insurance at a cost of $1,500. The second package offers $80,500 annual salary, employer-provided health insurance, annual free parking (worth $370 per month). $200,000 of life insurance (purchasing on her own would have been $1,500 annually), and free flight benefits (she estimates that it will save her $5,500 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,500 annually after taxes and spend another $5,500 in flights while traveling. Assume her marginal tax rate is 32 percent. (Use Exhibit 12-8.) 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 $106,000 salary with no qualified benefits instead of $91,000 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

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