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Problem 12-38 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Nicole's employer, Poe Corporation, provides her with an automobile allowance of
Problem 12-38 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Nicole's employer, Poe Corporation, provides her with an automobile allowance of $54,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit. Problem 12-38 Part a (Algo) a. What is Nicole's after-tax benefit if she receives the allowance this year? After-tax benefit Problem 12-38 Part b (Algo) b. What is Poe's after-tax cost of providing the auto allowance? After-tax cost
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