User Account

All Pages

How much would she benefit in after-tax dollars

Assignment Help Accounting Basics
Reference no: EM133094794

Question - In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $90,000 annual salary with no qualified fringe benefits and requires her to pay $3,500 a year for parking and to purchase life insurance at a cost of $1,000. The second package offers $80,000 annual salary, employer-provided health insurance, annual free parking (worth $315 per month), $200,000 of life insurance (purchasing on her own would have been $1,000 annually), and free flight benefits (she estimates that it will save her $5,000 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $5,000 and $1,000 respectively, annually after taxes and spend another $5,000 in flights while traveling. Assume her marginal tax rate is 32 percent.

Required -

a1. Which compensation package should she choose?

a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package?

b1. Assume the first package offers $100,000 salary with no qualified benefits instead of $90,000 salary and the other benefits and costs are the same. Which compensation package should she choose?

b2. How much would she benefit in after-tax dollars by choosing this package?

Reference no: EM133094794

Questions Cloud

Encourages employee participation in decision-making : If a manager delegates authority, encourages employee participation in decision-making, and grants greater autonomy to employees, they can be classified as util
Wheels and more sales and alignment services : Wheels and More Sales Alignment Services is the leading tyre and wheel alignment company in Jamaica; headquartered at 20 Slipe Road
Advise Great Paint Ltd on whether they should refund : Current long-term rates are 6% per annum and treasury bill rates are 4%. Advise Great Paint Ltd on whether they should refund
Team members and management on matters : You are required to identify a project you wish to implement in your workplace, which aims to address and improve one or more of the key focus areas of: team ef
How much would she benefit in after-tax dollars : How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package
What is a scorecard : What is a Scorecard and why do companies use it? Provide an overview of the Balanced Scorecard for Macdonalds Restaurants.
How to would implement criterion in ehr application : Describe how to would implement criterion in EHR application how you would make changes in the organization to achieve compliance with this criterion.
How much is the cost of equity for TAR Corp : The variance of TAR's returns is 0.25, the variance of the market returns is 0.16. How much is the cost of equity for TAR Corp
Calculate direct material price and flexible budget variance : Actual output: (in units) 4,000 Direct Materials (DM): DM pounds purchased. Calculate the direct materials price, efficiency and flexible budget variances

Reviews

Write a Review

Accounting Basics Questions & Answers

  Potential non-misstatement timing differences

Assume an accounts receivable confirmation is returned with a note to the auditor describing a difference between your client's records and the customer's records. Clearly describe below two potential non-misstatement timing differences that could..

  What is the productivity of the process

Mary needs to assess the productivity of new process she has started. She is able to produce 10 units per hour with an input of $6.75. What is the productivity

  At the end of the period it is necessary to close all

at the end of the period it is necessary to close all temporary accounts. 1 explain why this process is required and 2

  Redemption of bonds

Redemption of bonds

  Prepare the necessary adjusting entries at june

The financial year for Drip Dry Cleaning Services ends on 30 June. Prepare the necessary adjusting entries at 30 June

  Record each transaction using the allowance method

Record each transaction using the allowance method. Record each transaction using the direct write-off method.

  What is the current value of this stock

After that, the plan is to increase the dividend by 3.5 percent annually. What is the current value of this stock if applicable discount rate is 13.5 percent

  What is the debt-to-equity ratio

Argent has no preferred stock. Argent's total debt is $120 million. What is the debt-to-assets ratio? What is the debt-to-equity ratio

  What was the amount of outstanding checks on June

Mazaya Company wrote checks totaling R.O.8,540 during May and R.O.9,325 during June. What was the amount of outstanding checks on June

  Compute the variable cost per unit using the high-low method

Westerville Company accumulates the following data concerning a mixed cost, Compute the variable cost per unit using the high-low method

  Contrast IAASB management assertions with the of the PCAOB

Identify the IAASB ISA that provides guidance on management assertions. List the management assertions identified in the IAASB ISA

  For supply item hm bertha company has been ordering 130

for supply item hm bertha company has been ordering 130 units based on the recommendation of the sales person. who

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd