**PLEASE HELP** Seiko\'s currently has salary of $130,000, and she fancies Europ

Question

**PLEASE HELP**

Seiko's currently has salary of $130,000, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for an office equipment company. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $113,100 per year, but it allows employees to purchase one new car per year at a discount of $23,000. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, her current employer offers her a $12,700 raise. Answer the following questions about this analysis (ignore FICA taxes in your analyses). Assume that Seiko

Explanation / Answer

113,100*.7+23,000=102,170 is after tax income at auto dealership 102,170/.7= $145,957.14 to equal it

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