Question: In the current year, Jill, age 3 5 , received a job offer with two alternative compensation packages to choose from. The first package offers

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 $91,000 annual salary with no qualified fringe benefits and, requires her to pay $4,000 a year for parking and to purchase life insurance at a cost of $1,500.The second pacakage offers an $80,500 annual salary, employee-provided health insurance, annual free parking ( worth $380 per month) $200,000 of life insurance ( purchasing on her own would have been $1,500 annually) and free flighr benefits (she estimates that it will save her $5,500 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,500 annually after taxes and spend another $5,500 in flights while traveling. Assume her marginal tax rate is 32 percent.
A) how much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package?
B) assume the first package offers a $106,000 salary instead of a $91,000 salary, and the other benefits and costs are the same. Which compensation package should she choose.
B2) how much would she benefit in after-tax dollars by choosing this package?

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