Business, 08.10.2020 03:01 jphelps19992019
The plant union is negotiating with the Eagle Company, which is on the verge of bankruptcy. Eagle has offered to pay for the employees' hospitalization insurance in exchange for a wage reduction. Each employee currently pays premiums of $4,000 a year for his or her insurance. Which of the following is correct: a. If an employee's wages are reduced by $5,000 and the employee is in the 24% marginal tax bracket, the employee would benefit from the offer. b. If an employee's wages are reduced by $6,000 and the employee is in the 35% marginal tax bracket, the employee would benefit from the offer. c. If an employee's wages are reduced by $4,000 and the employee is in the 12% marginal tax bracket, the employee would benefit from the offer. d."If an employee's wages are reduced by $5,000 and the employee is in the 24% marginal tax bracket, the employee would benefit from the offer", "If an employee's wages are reduced by $4,000 and the employee is in the 12% marginal tax bracket, the employee would benefit from the offer", and "If an employee's wages are reduced by $6,000 and the employee is in the 35% marginal tax bracket, the employee would benefit from the offer". e. None of these choices are correct.
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