Problem $8$: Tax Planning

You have received two job offers which have the same base salary and the following additional benefits:

Option $1$:$$ The employer will allow you to use the company$$s private plane when there are open seats on a flight which is estimated to have a value of $8,000($assume it meets the requirements of a no$-$additional$-$cost service$).$ In addition, they will pay $$1,000$ towards qualified tuition.$$

Option $2$: An additional cash bonus at the end of the year for $$10,000,$ but no other benefits. However, you will be allowed to work from home.

Assume you face a $25\%$ tax rate.

Required:$$ Which option would you choose and why? Note, that your answer should explicitly indicate if you are choosing option $1$ or $2$ and then provide the reasons for your preference.

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