Nicoles employer, Poe Corporation, provides her with an automobile allowance of $20,700 every other year. Her marginal tax rate is 30 percent. Poe Corporation has a marginal tax rate of 35 percent. Answer the following questions relating to this fringe benefit.

a. What is Nicoles after-tax benefit if she receives the allowance this year?

After-tax benefit:__________

b. What is Poes after-tax cost of providing the auto allowance?

After-tax cost:__________