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In: Accounting

Wilbur has been offered a job at a salary that would put him in the 24%...

Wilbur has been offered a job at a salary that would put him in the 24% marginal tax bracket. In addition to his salary, he would receive health insurance coverage. Another potential employer does not offer health insurance but has agreed to match the first offer on an after-tax and insurance basis. The cost of health insurance comparable to that provided by the other potential employer is $9,000 per year. How much more in salary must the second potential employer pay so that Wilbur's financial status will be the same under both offers?

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Expert Solution

How much more in salary must the second potential employer pay so that Wilbur's financial status will be the same under both offers?

Given,

Marginal tax rate = 24 %

Cost of health insurance comparable to that provided by the other potential employer = $9,000 per year

Answer = 9000 /( 100 - 24 ) %

9000 / 76 % =

$ 11842

ekkarill92 answered 2 years ago
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