Question: Sharon has not worked outside the home since her first child was born five years ago. Now that the younger of her two children has

Sharon has not worked outside the home since her first child was born five years ago. Now that the younger of her two children has reached age three, she thinks they are old enough to go to a day care center and she can return to work. Sharon received two job offers. Mahalo Company offered to pay her a salary of $19,000 and also provide free on-site child care facilities as an employee fringe benefit. Ohana Company offered to pay her a salary of $26,000 but offers no employee fringe benefits. There is a day care facility across the street from Ohana Company that would cost $525 per month. Sharon files a joint tax return with her husband, Tom. Their current taxable income, without Sharon's salary, is $75,000. Sharon and Tom would like to know which job provides the greater aftertax cash flow.

Step by Step Solution

3.26 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The 19000 job with Mahalo that provides free child care provides the greater aftertax cash flow Thei... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

826-L-B-L-T-L (4750).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!