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Problem 12-41 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Seiko's current salary is $127,500. Her marginal tax rate is 32
Problem 12-41 (LO 12-3) (Algo) [The following information applies to the questions displayed below.] Seiko's current salary is $127,500. Her marginal tax rate is 32 percent, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $116,800 per year, but it allows employees to purchase one new car per year at a discount of $16,700. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $10,900 raise. Answer the following questions about this analysis. a Problem 12-41 Part b (Algo) b-1. Financially, which offer is better for Seiko on an after-tax basis? Car dealer's offer O Current employer's offer O Both offers b-2. By how much is the offer better for Seiko on an after tax basis (Assume that Seiko is going t purchase the new car whether she switches jobs or not.) Offer is better by
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