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Trent, Incorporated needs an additional worker on a multiyear project. It could hire an employee for a $73,000 annual salary. Alternatively, it could engage
Trent, Incorporated needs an additional worker on a multiyear project. It could hire an employee for a $73,000 annual salary. Alternatively, it could engage an independent contractor for a $80,000 annual fee. Trent's income tax rate is 21 percent. Required: Compute the annual after-tax cost of each option and indicate which minimizes the after-tax cost of obtaining the worker. Note: Round all your intermediate calculations and final answers to the nearest whole dollar amount. After-tax cost of employee After-tax.cost of independent contractor Option that minimizes after-tax cost
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