Nichole's employer, poe corporation, provides her with and automobile allowance of 20,000 every other year. Her marginal tax rate is 30 percent. Poe Corporation has a marginal tax rate of 35 percent. Answer the following questions realting to fringe benefits.
A. What is Nichole's after-tax benefit if she receives the allowance this year?
B. What is Poes after tax cost of providing the auto allowance?