Consider the following facts:

a. Complete the following table for each case:

b. Suppose in Case 2 from Part a that the employer and employee negotiate a D_n of 1.62. Compute CSI, DCI, CSE, and DCE with this D_n to show that each party to the deferred compensation contract shares in the tax benefit.

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Case 3 Case 2 Variables Case 1 $10,000 BT$ $10,000 $10,000 .30 .30 .40 tpo tpn .40 .10 .40 .30 .10 .10 .35 .35 .35 .35 tco .35 .25 .15 .20 .10 3 3. Case 1 Case 2 Case 3 Employer's D, Employee's D, Decision (CS or DC?) CSI DCI (employer indiff.) CSE DCE (employer indiff.) CSI DCI (employee indiff.) CSE DCE (employee indiff.)