How much taxable compensation would she need to earn

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Question - Jan's combined marginal tax rate on additional income is 25%. Jan's employer gives her the option of tax exempt health insurance coverage or taxable compensation. Comparable health insurance would cost Jan $12,000 per year to purchase. Assuming Jan wishes to be insured, how much taxable compensation would she need to earn to have an after-tax value equal to the exempt health insurance coverage?

Reference no: EM132846423

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