In the current year, Jill, age 35, recelved a job offer with two alternative compensation packages to choose from. The first package offers her a \\( \\$ 90,800 \\) annual salary with no qualified fringe benefits, employer provided health insurance, and requires her to pay \\( \\$ 3,900 \\) a year for parking and to purchase life insurance at a cost of \\( \\$ 1,400 \\). The second package offers an \\( \\$ 80,400 \\) annual salary, employer-provided health insurance, annual free parking (worth \\( \\$ 360 \\) per month), \\( \\$ 200,000 \\) of life insurance (purchasing on her own would have been \\( \\$ 1,400 \\) annually), and free flight benefits (she estimates that it will save her \\( \\$ 5,400 \\) per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of \\( \\$ 1,400 \\) annually after taxes and spend another \\( \\$ 5,400 \\) 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 a \\( \\$ 105,000 \\) salary instead of a \\( \\$ 90,800 \\) 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. 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.) employer-provided health insurance, annual free parking (worth \\( \\$ 360 \\) per month), \\( \\$ 200,000 \\) of life insurance (purchasing on her own would have been \\( \\$ 1,400 \\) annually), and free flight benefits (she estimates that it will save her \\( \\$ 5,400 \\) per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of \\( \\$ 1,400 \\) annually after taxes and spend another \\( \\$ 5,400 \\) 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 a \\( \\$ 105,000 \\) salary instead of a \\( \\$ 90,800 \\) 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. How much would she benefit in after-tax dollars by choosing this package? (Round your intermediate computations to the nearest whole dollar amount.)
