This is for personal taxation class for undergraduate in Acccounting.
Brenda Jones is considering taking an early retirement offered by her employer. Decision making, she would receive $3,000 per month, indexed for inflation. However, she would no longer be able to use the company’s health facilities, and she would be required to pay for her own hospitalization insurance premiums of $8,000 each year. Brenda Jones and her husband, David Jones, will file a joint return and take the standard deduction. She currently receives a salary of $55,000 a year. If she retires, she will spend approximately $300 less each month for commuting and clothing. Brenda Jones and her husband, David Jones, have other sources of income and are in and will remain in the 25% marginal tax bracket. Her income tax for the current year was $8,875. She currently pays Social Security and Medicare taxes of 7.65% on her salary, but her retirement pay would not subject to this tax. According to Brenda Jones, she and her husband could live well if her after-tax. Retirement income was at least 50% of her current income. Provide Benda Jones and her husband with information they would need to make her decision. with explanation/showing work (if there is any)