n 2016, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $126,000 annual salary with no qualified fringe benefits, requires her to pay $6,300 a year for parking, and pay her life insurance premiums at a cost of $2,150. The second package offers $116,000 annual salary, employer-provided health insurance, annual free parking (worth $380 per month), $225,000 of life insurance (purchasing on her own would have been $2,150 annually), and free flight benefits (she figures that it will save her $6,600 per year). If Jill chooses the first package, she would purchase the health and life insurance benefits herself at a cost of $6,250 annually after taxes and spend another $6,600 in flights while traveling. Assume her marginal tax rate is 28 percent. a-1. Which compensation package should she choose?

Package 1 offers her $126,000 annual salary with no qualified fringe benefits.

Package 2 offers $116,000 annual salary plus health and life insurance benefits.

-2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the other compensation package?

b-1. Assume the first package offers $144,000 salary with no qualified benefits instead of $126,000 salary plus benefits. Which compensation package should she choose?

	Package 1 offers her $144,000 annual salary with no qualified fringe benefits.
	Package 2 offers $116,000 annual salary plus health and life insurance benefits. b-2. How much would she benefit in after-tax dollars by choosing this package?