o pay an employee total compensation of $140,000, which includes $120,000 of salary, $5,000 of taxable fringe benefits, and $15,000 of nontaxable fringe benefits. Also, assume that the employers tax rate is 21%. What is the after-tax cost to the employer for paying this compensation to the employee, for income tax purposes only?

$140,000

$110,600

$98,750

$120,000