Comprehensive Problem $12-53($LO $12-1,$ LO $12-2,$ LO $12-3)($Algo$)$

In the current year, Jill, age $35,$ received a job offer with two alternative compensation packages to choose from. The first package offers her a $\backslash (\backslash$$ $91,400\backslash )$ annual salary with no qualified fringe benefits and requires her to pay $\backslash (\backslash$$ $4,200\backslash )$ a year for parking and to purchase life insurance at a cost of $\backslash (\backslash$$ $1,700\backslash )$ and health insurance for $\backslash (\backslash$$ $5,700\backslash ).$ The second package offers an $\backslash (\backslash$$ $83,400\backslash )$ annual salary, employer$-$provided health insurance worth $\backslash (\backslash$$ $5,700\backslash ),$ annual free parking $($worth $\backslash (\backslash$$ $400\backslash )$ per month$),\backslash$$$200,000$ of life insurance $($purchasing on her own would have been $\backslash (\backslash$$ $1,700\backslash )$ annually$),$ and free flight benefits $($she estimates that it will save her $\backslash (\backslash$$ $5,700\backslash )$ per year$).$ If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $\backslash (\backslash$$ $7,400\backslash )$ annually after taxes and spend another $\backslash (\backslash$$ $5,700\backslash )$ in flights while traveling. Assume her marginal tax rate is $32$ percent. $($Use Exhibit $12-8.)$

Required:

a$1.$ Which compensation package should she choose?

a$2.$ How much would she benefit in after$-$tax dollars by choosing this compensation package instead of the alternative package?

b$1.$ Assume the first package offers a $\backslash (\backslash$$ $108,000\backslash )$ salary instead of a $\backslash (\backslash$$ $91,400\backslash )$ salary, and the other benefits and costs are the same. Which compensation package should she choose?

b$2.$ How much would she benefit in after$-$tax dollars by choosing this package?