Question
Nicoles employer, Poe Corporation, provides her with an automobile allowance of $34,000 every other year. Her marginal tax rate is 32 percent. Answer the following
Nicoles employer, Poe Corporation, provides her with an automobile allowance of $34,000 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?
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Financial Accounting
Authors: Robert F. Meigs, Jan R. Williams, Mark S. Bettner, Susan F. Haka, Sue Haka
11th Edition
0072516682, 978-0072516685
