Question
Required information (The following information applies to the questions displayed below] 777 Corporation has a deferred compensation plan under which it allows certain employees
Required information (The following information applies to the questions displayed below] 777 Corporation has a deferred compensation plan under which it allows certain employees to defer up to 35 percent of their salary for five years. For purposes of this problem.ignore payroll taxes in your comp your intermediate calculations and final answers to the nearest whole doller emount) onse La) (Round Assume tulle an XYZ employee, has the option of participating in XYZ's deferred compensation plan. Julle's marginal tax rate is 37 Icent and she expects the rate to remain constant over the next five years. Julle is trying to decide how much deferred Compensation she will need to receive from XYZ in five years to make her indifferent between receiving the current salary of $18100 and receiving the deterred compensation payment. If Jute takes the salary she will inv in a taxable corporate bond paying nterest at 5 percent annually (after lazes) What amount of deferred compensation would accomplish this objective?
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