![sihamabdalla591](/avatars/28110.jpg)
sihamabdalla591
13.10.2020 •
Business
Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $525 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $420. If Nitai works over the weekend, he will have to pay the $420 to have his car repaired, but he will earn $525. Assume Nitai’s marginal tax rate is 12 percent rate.
Required:
a. Strictly considering tax factors, should Nitai work or repair his car if the $420 he must pay to have his car fixed is deductible for AGI?
b. Given the answer in a above, by how much is Nitai better or worse off?
Solved
Show answers
More tips
- W Work and Career Which types of activities are not subject to mandatory licensing?...
- C Computers and Internet Thin Client: What It Is and Why You Need It?...
- F Food and Cooking The Most Delicious and Simple Fish in Batter Recipe...
- F Food and Cooking Red Caviar: How to Choose the Best?...
- C Computers and Internet Clearing Cache: How to Speed Up Your Browser...
- S Style and Beauty How are artificial nails removed?...
- S Style and Beauty Secrets of Tying a Pareo: 5 Ways...
- F Food and Cooking Everything You Need to Know About Pasta...
Answers on questions: Business
- C Chemistry Which type of matter can only be separated by physical means?...
- M Mathematics In ΔWXY, x = 700 cm, w = 710 cm and ∠W=24°. Find all possible values of ∠X, to the nearest 10th of a degree....
- M Mathematics I need help please!!...
- M Mathematics A line that includes the point (-4, 9) has a slope of 1/2. What is its equation in point-slope form? Use the specified point in your equation. Write your answer...
- M Mathematics Find two numbers a and b whose sum a+b is −3, and whose difference a−b is −7.Your answer is...
Ответ:
A) $12.6 B)He will have earned $92.4 extra.
Explanation:
A) Assuming that the $420 is not included when calculating the 12 percent tax, that means the tax that he will pay for the $525 is 12 percent of $105 which is (105 x 12) / 100 = $12.6
B) If Nitai does not work and instead fixes the car himself without spending the $420, he will save that money. But if he works and gets the car fixed at Autofix, he will have earned $92.4 over the weekend and still get his car fixed.
I hope this answer helps.
Ответ: