Essay
Thrush,Inc.,provides group-term life insurance of $50,000 for all of its employees.The total cost of such coverage is $15,000.Wren,Inc.,does not provide such coverage.Instead,it increases the employees' salaries by $15,000 so the employees can purchase such coverage if they choose to do so.The corporations are in the 34% tax bracket,and the shareholders are in the 28% tax bracket.Compare the effects of the two different fringe benefit policies on the corporations and on the employees.
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