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Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitais employer called and offered him

Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitais employer called and offered him $125 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $90. If Nitai works over the weekend, he will have to pay the $90 to have his car repaired, but he will earn $125. Assume Nitais marginal tax rate is 12 percent rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a-1. Strictly considering tax factors, should Nitai work or repair his car if the $90 he must pay to have his car fixed is not deductible? multiple choice Work Repair

a-2. Given the answer in a-1 above, by how much is Nitai better or worse off?

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