Question
Sonja is a United States citizen who has worked in Spain for the past 10 months. She received $8,000 a month as compensation. Her employer
Sonja is a United States citizen who has worked in Spain for the past 10 months. She received $8,000 a month as compensation. Her employer has offered to extend Sonjas contract to work in Spain for another 6 months at the same rate of pay. If she rejects the offer, she can return to the United States and receive a salary of $10,000 per month. While working in Spain, she is subject to the Spain income tax, which is approximately 11% of her gross pay. The marginal tax rate on her income taxed in the United States is 25%. Compare Sonjas after-tax income assuming she remains in Spain with her after-tax income if she returns to the United States.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started