Question
Nicole's employer, Poe Corporation, provides her with an automobile allowance of $70,000 every other year. Her marginal tax rate is 32 percent. Answer the following
Nicole's employer, Poe Corporation, provides her with an automobile allowance of $70,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit.
Required:
What is Nicole's after-tax benefit if she receives the allowance this year?
What is Poe's after-tax cost of providing the auto allowance?
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Principles of Financial Accounting
Authors: Belverd E. Needles, Marian Powers
12th edition
978-1133940562, 1133940560, 978-1285608464, 1285608461, 1133939287, 978-0357693605, 978-1285607047, 128560704X, 978-1133939283
