Question
Nicoles employer, Poe Corporation, provides her with an automobile allowance of $44,000 every other year. Her marginal tax rate is 32 percent. Answer the following
Nicoles employer, Poe Corporation, provides her with an automobile allowance of $44,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit.
a. What is Nicoles after-tax benefit if she receives the allowance this year?
b. What is Poes after-tax cost of providing the auto allowance?
c. Nicole is the CEO of publicly traded TTT Corporation and earns a salary of $380,000 in the current year.
What is TTT Corporations after-tax cost of paying Nicole's salary excluding FICA taxes?
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Statistical Techniques For Forensic Accounting Understanding The Theory And Application Of Data Analysis
Authors: Saurav K. Dutta
1st Edition
0133133818, 9780133133813
