Seiko$$s current salary is $$97,000.$ 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, Inc. 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 $$85,000$ per year, but it allows employees to purchase one new car per year at a discount of $$16,900.$ This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply, Inc. offers her a $$10,500$ raise. Answer the following questions about this analysis.

a$.$ What is the annual after$-$tax cost to Idaho Office Supply, Inc. if it provides Seiko with the $$10,500$ increase in salary? $($Ignore payroll taxes.$)$

After$-$Tax Cost $[$$ $]$

b$-1.$ Financially, which offer is better for Seiko on an after$-$tax basis?

multiple choice

$[$Car dealer's offer$]$

Current employer's offer

Both offers

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.$)$

Offer Better By $[$$$1,600]$

c$.$ What salary would Seiko need to receive from Idaho Office Supply, Inc. to make her financially indifferent $($after taxes$)$ between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership? $($Round your intermediate computations to the nearest dollar amount.$)$

Salary Needed $[$$ $]$