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Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nital's employer called and offered
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nital's employer called and offered him $500 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $400. If Nitai works over the weekend, he will have to pay the $400 to have his car repaired, but he will earn $500. Assume Nital's marginal tax rate is 12 percent rate. Required: a-1. Strictly considering tax factors, should Nitai work or repair his car if the $400 he must pay to have his car fixed is not deductible? a-2. Given the answer in a-1 above, by how much is Nitai better or worse off? b-1. Strictly considering tax factors, should Nital work or repair his car if the $400 he must pay to have his car fixed is deductible for AGI? b-2. Given the answer in b-1 above, by how much is Nital better or worse off? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required 82 Strictly considering tax factors, should Nital work or repair his car if the $400 he must pay to have his car fixed is not deductible? Required A1 Required A2 > Prev 5 of 8 Next >
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