Jenny Atkinson is reviewing employment offers. The employment offer from ILU, Inc. includes private health insurance that ILU, Inc. will purchase on her behalf. ILU Inc. will have to pay a $1,840 premium per year to obtain this health insurance. ILU, Inc. is in a 30% marginal income tax bracket. Jenny expects to be in a 51% marginal income tax bracket. When answering the following questions, be sure to show all details of any calculations.

a. How much does Jenny have to include in her income tax return each year as a result of ILU Inc. paying the $1,840 premium to cover Jenny under the private health insurance plan?

b. What is the after-tax cost to ILU Inc. of providing this health insurance coverage for Jenny?

c. Jones Company also wants to hire Jenny. Jones Company does not provide health insurance coverage. All other things being equal, how much additional salary does Jones Company have to offer Jenny so that the two employment offers are equal