ram Rachel receives employer provided health insurance. The employer's cost of thehealth insurance is $6,100 annually. What is her employer's after-tax cost ofproviding the health insurance, assuming that the employer's marginal tax rateis 21 percent and is profitable?

The after-tax cost of an expense is the amount of money spent on an expense minus the amount of the…

Answered: Rachel receives employer provided…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 6P

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Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,100 annually. What is her employer's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and is profitable?