What is poes after-tax cost of providing the auto allowance

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Question - Nicole's employer, Poe Corporation, provides her with an automobile allowance of $20,000 every other year. Her marginal tax rate is 32 percent. Answer the following questions relating to this fringe benefit.

Required -

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

b. Is this question missing the tax rate for Poe Corporation?

Reference no: EM132524822

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