Required information Problem 12-34 (LO 12-2) (Algo) [The following information applies to the questions displayed below.] On January 1, year 1, Dave received 1,250 shares of restricted stock from his employer, RRK Corporation. On that date, the stock price was $27 per share. On receiving the restricted stock, Dave made the 83(b) election. Dave's restricted shares will vest at the end of year 2 . He intends to hold the shares until the end of year 4 , when he intends to sell them to help fund the purchase of a new home. Dave predicts the share price of RRK will be $31 per share when his shares vest and $44 per share when he sells them. Assume that Dave's price predictions are correct, and answer the following questions: Note: Leave no answers blank. Enter zero if applicable. Round your final answer to the nearest whole dollar value. Enter all amounts as positive values. Problem 12-34 Part a (Algo) a. What are Dave's taxes due if his ordinary marginal rate is 32 percent and his long-term capital gains rate is 15 percent? Answer is complete but not entirely correct. Seiko's current salary is $87,500. 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 $73,900 per year, but it allows employees to purchase one new car per year at a discount of $23,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply offers her a $17,800 raise. Answer the following questions about this analysis. Required: What is the annual after-tax cost to Idaho Office Supply if it provides Seiko with the $17,800 increase in salary? Note: Ignore payroll taxes. b-1. Financially, which offer is better for Seiko on an after-tax basis? b-2. By how much is the offer better for Seiko on an after tax basis? (Assume that Seiko is going to purchase the new car whether she switches jobs or not.) c. What salary would Seiko need to receive from Idaho Office Supply to make her financially indifferent (after taxes) between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership? Note: Round your intermediate computations to the nearest dollar amount. Complete this question by entering your answers in the tabs below. What is the annual after-tax cost to Idaho Office Supply if it provides Seiko with the $17,800 increase in salary? Note: Ignore payroll taxes