Seiko's current salary is $116,500. 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 ldaho 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 $97,800 per year, but it allows employees to purchase one new car per year at a discount of $24,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee. Idaho Office Supply offers her a $12,000 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 $12,000 increase in salory? Note: Ignore payroll taxes. b-1. Financially, which offer is better for Selko 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. c. What salary would Seiko need to receive from Idaho Office Supply to make her financially indifferent (after taxes) between additional salary from Idaho Office Supply and accepting a position at the auto dealership? Note: Round your intermediate computations to the nearest dollar amount. Answer is not complete. 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 $12,000 increase in salary? Note: Ignore payroll taxes. Seiko's current salary is $116,500. 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 ldaho 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 $97,800 per year, but it allows employees to purchase one new car per year at a discount of $24,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee. Idaho Office Supply offers her a $12,000 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 $12,000 increase in salory? Note: Ignore payroll taxes. b-1. Financially, which offer is better for Selko 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. c. What salary would Seiko need to receive from Idaho Office Supply to make her financially indifferent (after taxes) between additional salary from Idaho Office Supply and accepting a position at the auto dealership? Note: Round your intermediate computations to the nearest dollar amount. Answer is not complete. 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 $12,000 increase in salary? Note: Ignore payroll taxes
