Josh works for Exxon Mobil and is selecting his long term disability coverage during annual enrollment. He can pay for his premium wit before tax or after tax dollars. His salary is $100,000 per year. Assume he pays an average tax rate of 20%. Assume he has decied to replace 60% of his income. If he pays with before tax dollars what would his after tax annual benefit be if he becomes disabled

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Josh works for Exxon Mobil and is selecting his long term disability coverage during annual enrollment. He can pay for his premium wit before tax or after tax dollars. His salary is $100,000 per year. Assume he pays an average tax rate of 20%. Assume he has decied to replace 60% of his income. If he pays with before tax dollars what would his after tax annual benefit be if he becomes disabled (assume a 20% tax rate)? After tax benefit =

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