Selko's current salary is $94,500. Her marginal tax rate is 32 percent, and she fancles European sports cars. She purchases a new auto each year. Selko is currently a manager for Idaho Office Supply. Her friend, knowing of her Interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $84,200 per year, but it allows employees to purchase one new car per year at a discount of $21,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Selko as an employee, Idaho Office Supply offers her a $18,200 raise. Answer the following questions about this analysis. Problem 12-41 Part c (Algo) c. What salary would Selko need to receive from Idaho Office Supply to make her financially Indifferent (after taxes) between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership? (Round your Intermediate computations to the nearest dollar amount.)

Selko's current salary is $94,500. Her marginal tax rate is 32 percent, and she fancles European sports cars. She purchases a new auto each year. Selko is currently a manager for Idaho Office Supply. Her friend, knowing of her Interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $84,200 per year, but it allows employees to purchase one new car per year at a discount of $21,400. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Selko as an employee, Idaho Office Supply offers her a $18,200 raise. Answer the following questions about this analysis. Problem 12-41 Part c (Algo) c. What salary would Selko need to receive from Idaho Office Supply to make her financially Indifferent (after taxes) between receiving additional salary from Idaho Office Supply and accepting a position at the auto dealership? (Round your Intermediate computations to the nearest dollar amount.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 31P

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