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Nicole's employer, Poe Corporation, provides her with an automobile allowance of $56,000 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 $56,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit. a. What is Nicole's after-tax benefit if she receives the allowance this year? After-tax benefit Nicole's employer, Poe Corporation, provides her with an automobile allowance of $56,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit. b. What is Poe's after-tax cost of providing the auto allowance? After-tax cost
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