Nicoles employer poe corporation provides her with an

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Nicole's employer, Poe Corporation, provides her with an automobile allowance of $27,000 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)?
After-tax benefit $

B. What is Poe's after-tax cost of providing the auto allowance?
After-tax cost $

Reference no: EM13598778

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