Question
Matteo, who is single and hadno dependents, was planning on spending the weekend repairing his car. On Friday, Matteo's employer called and offered him $475
Matteo, who is single and hadno dependents, was planning on spending the weekend repairing his car. On Friday, Matteo's employer called and offered him $475 in overtime pay if he would agreeto work over the weekend.Matteo could get his car fixed over the weekend at Autofix for $361.If Matteo works over the weekend, he will have to pay $361 to have his car repaired,but he will earn$475. Assume Matteo pays tax at aflaxrate of 15%. (Do not round immediate calculation. Round your answers to 2 decimal places.)
a-1 Considering monetary considerations only, should Matteo work or repair his car if the $361he must pay to repair his car is not deductible?
Work
Repair
a-2 Given the answer in a-1, by how much is Matteo better or worse off?
Better
Worse
$________
b-1 Considering monetary considerations only, should Matteo work or repair his car if the $361he must pay to repair his car isdeductible for AGI?
Work
Repair
a-2 Given the answer in a-1, by how much is Matteo better or worse off?
Better
Worse
$ ________
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