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 $250 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $185. If Nitai works over the weekend, he will have to pay the $185 to have his car repaired, but he will earn $250. 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 $185 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?