Ellen is a single taxpayer who is considering two job offers. Ellen considers both accounting firms to be equally desirable in terms of the opportunities for long-term career growth. But the companies have significantly different compensation and benefits packages. She has come to you for a recommendation. Below is a summary of the benefits packages offered by each firm.

In addition to salary, Mahindra and Associates (a well-established public accounting firm with several offices and high-profile clients) also offers several additional fringe benefits to its employees. In particular, Ellen believes that the high-quality health insurance coverage is an attractive benefit. In addition, she believes that she will also take advantage of the educational assistance that the firm provides, as she hopes to pursue an additional graduate degree. Below are the specifics of the compensation and benefits:

Salary.......................................................................................................................................$65,000
Health insurance coverage
Annual estimated premiums................................................................................................... 3,700
(Employer pays 100% of premiums) Educational assistance:
Maximum benefit.......................................................................................................................8,000
The other firm that Ellen is considering, Glenmark and Associates (a relatively new firm with one office that focuses on new technology companies), offers a higher salary, but
their fringe benefits are not as attractive. Below are the specifics of their compensation and benefits:
Salary........................................................................................................................................$72,000 

Health insurance coverage Annual estimated premiums ....................................................4,100
(Employer pays 70% of premiums/employee pays 30% of premiums) Educational assistance:
Maximum benefit.........................................................................................................................3,500
The health insurance plans offered by Mahindra and Glenmark are similar in terms of coverage, out-of-pocket costs, etc. (In other words, the quality of coverage is the same under each plan.) Ellen believes that her actual tuition costs for the graduate classes will be $9,500.
Determine which offer is best for Ellen to accept, assuming that she will be in the 25% marginal tax bracket.