Nicholes employer poe corporation provides her with and

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Nichole's employer, poe corporation, provides her with and 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 realting to fringe benefits.

A. What is Nichole's after-tax benefit if she receives the allowance this year?

B. What is Poes after tax cost of providing the auto allowance?

Reference no: EM13608792

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