Trisha Is Married and Has Young Children

question 69

Multiple Choice

Trisha is married and has young children.The couple is in the 37% tax bracket.In order for Trisha and her husband to work,they pay $5,000 for daycare which earns them a $1,000 dependent care credit.Trisha has been offered a new job.The new job will pay a $5,000 lower salary,but the new employer will offer $5,000 of paid child care.Trisha cannot claim the dependent care credit if she receives employer-paid child care.Which of the following statements is correct? (Ignore payroll taxes.)

• A)Trisha will have $850 additional after-tax income if she accepts the new job.
• B)Trisha will lose $4,000 net value if she accepts the new job.
• C)Trisha will have $1,850 additional after-tax income if she accepts the new job.
• D)Trisha will lose $3,150 of net value if she accepts the new job.

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Definitions:

Heme

An iron-containing compound that forms an essential component of hemoglobin, allowing it to bind oxygen in the bloodstream.

Iron

A chemical element with the symbol Fe, essential for various biological processes including oxygen transport in hemoglobin.

Capillaries

The smallest blood vessels in the body's circulatory system, where the exchange of water, oxygen, carbon dioxide, and other nutrients and waste substances occurs between blood and tissues.

Arterioles

Small blood vessels that extend and branch out from arteries and lead to capillaries, playing a key role in regulating blood pressure.