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Problem - Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai's employer called and offered him $325 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $234. If Nitai works over the weekend, he will have to pay the $234 to have his car repaired but he will earn $325. Assume Nitai pays tax at a flat 12 percent rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
1. Strictly considering tax factors, should Nitai work or repair his car if the $234 he must pay to have his car fixed is deductible for AGI?
2. Give by how much is Nitai better or worse off?
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