Seikos current salary is $85,500. 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, 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 $72,000 per year, but it allows employees to purchase one new car per year at a discount of $16,600. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply, Inc. offers her a $7,500 raise. Answer the following questions about this analysis. rev: 10_09_2020_QC_CS-234055 Problem 12-41 Part b (Algo)

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.)