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McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Edition 3ISBN: 9780078111068 Exercise 54
Nicole's employer, Poe Corporation, provides her with an automobile allowance of $20,000 every other year.Her marginal tax rate is 30 percent.Poe Corporation has a marginal tax rate of 35 percent.Answer the following questions relating to this fringe benefit.a.What is Nicole's after-tax benefit if she receives the allowance this year (ignore FICA taxes)?
b.What is Poe's after-tax cost of providing the auto allowance?
b.What is Poe's after-tax cost of providing the auto allowance?
Explanation
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Fringe Benefits
The employers pay some ...
McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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