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Business, 30.07.2021 18:10 benpark5370

Mrs. Eller's corporate employer has a cafeteria plan under which its employees can receive a $3,000 year-end Christmas bonus or enroll in a qualified medical reimbursement plan that pays up to $3,000 of annual medical bills. Mrs. Eller is in a 24 percent tax bracket, and her medical bills average $2,300 each year. Required: a-1. Compute the after-tax value of Christmas bonus and medical reimbursement plan. (Ignore any payroll tax implications.) a-2. Should Mrs. Eller choose the cash bonus or the nontaxable fringe benefit

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