Rick, who is single, has been offered a position as a city landscape consultant. The position pays $125,000 in cash wages. Assume Rick files single and is entitled to one personal exemption. Rick deducts the standard deduction instead of itemized deductions. (use the 2018 tax rate schedules.)

1. What is the amount of Ricks after-tax compensation (ignore payroll taxes)?

2. Suppose Rick receives a competing job offer of $120,000 in cash compensation and nontaxable (excluded) benefits worth $5,000. What is the amount of Ricks after-tax compensation for the competing offer?

2018 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household If taxable Income is over: If taxable Income is over: But not But not The tax is: The tax is: over: over: 0 $ 9,525 10% of taxable income $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% of the excess over $38,700 $14,089.50 plus 24% of the excess over $82,500 $32,089.50 plus 32% of the excess over $157,500 $45,689.50 plus 35% of the excess over $200,000 $150,689.50 plus 37% of the excess over $500,000 0 $ 1 3,600 $ 9,525 $ 38,700 $ 82,500 $157.500 $200,000 500,000 $.38,700 $ 82,500 $157,500 $200.000 $500,000 $. 13,600 $ 51.800 $ 82,500 $157.500 $200,000 $500,000 $ 51,800 $ 82.500 $157,500 $200.000 $500,000 10% of taxable income $1,360 plus 12% of the excess over $13,600 $5,944 plus 22% of the excess over $51,800 $ 12,698 Plus 24% of the excess over $82,500 $30,698 Plus 32% of the excess over $157,500 $44,298 plus 35% of the excess over $200,000 $149,298 plus 37% of the excess over $500,000 - Schedule Y-1-Married Filing Jolntly or Qualifying Widow(er) Schedule Y-2-Married Fling Separately If taxable income is over: But not If taxable income is over: But not over: The tax is: over: The tax is: 0 $ 9,525 10% of taxable income $952.50 plus 12% of the excess over $9,525 $4,453.50 plus 22% of the excess over $38,700 $14,089.50 plus 24% of the excess over $82,500 $32,089.50 plus 32% of the excess over $157.500 $45,689.50 plus 35% of the excess over $200,000 $80,689.50 ous 37% of the excess over $300,000 0 $. 1 9,050 $. 19,050 $. 77,400 $165,000 $315,000 $400,000 $600,000 $. 77,400 $165,000 $315,000 $400,000 $600,000 10% of taxable income $1,905 plus 12% of the excess over $19.050 $8,907 plus 22% of the excess over $77,400 $28,179 plus 24% of the excess over $165,000 $64,179 plus 32% of the excess over $315,000 $91,379 plus 35% of the excess over $400,000 $161,379 plus 37% of the excess over $600,000 $ 9,525 $. 38,700 $. 82,500 $157,500 $200,000 $300,000 $38,700 $ 82,500 $157,500 $200,000 $300,000