Sophia's Employer Is Considering Paying Her Either $20,000 of Current

question 5

Multiple Choice

Sophia's employer is considering paying her either $20,000 of current salary or $40,000 of deferred compensation in 12 years.Her employer's current tax rate is 34%,but the employer expects its tax rate to be 25% 12 years from now.The employer's ATROR is 11%.If the employer waits and pays the deferred compensation,its after-tax deferred compensation expense projected to Year 12 is

• A)$20,000.
• B)$26,400.
• C)$30,000.
• D)$40,000.

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Definitions:

Roles

The functions or parts played by individuals in a particular social, professional, or other contexts.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or endorsements, rather than logical argument, to influence opinions or attitudes.

Offering Evidence

The act of providing information, facts, or data to support a claim, argument, or hypothesis.

Unimportant Cues

Signals or pieces of information that are deemed irrelevant or not significant to the task or situation at hand.