Bob,an Employee of Modern Corp

question 28

Multiple Choice

Bob,an employee of Modern Corp.,receives a fringe benefit (in lieu of a salary increase) of $1,000.Bob is in a 33% tax bracket.The fringe benefit is nontaxable to Bob and is not deductible as an itemized deduction.Bob's after-tax savings from receiving the tax-free benefit is

• A)$0.
• B)$333.
• C)$667.
• D)$1,000.

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Definitions:

Sustainable-Wage Jobs

Employment positions that offer wages sufficient to support a decent standard of living for individuals and their families.

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Frederick Taylor

Known as the father of scientific management, he revolutionized industry by developing efficiency techniques and systems for improving productivity.