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Mathematics, 17.10.2021 02:50 shey89
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Nitai, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Nitai’s employer called and offered him $650 in overtime pay if he would agree to work over the weekend. Nitai could get his car repaired over the weekend at Autofix for $520. If Nitai works over the weekend, he will have to pay the $520 to have his car repaired, but he will earn $650. Assume Nitai’s marginal tax rate is 12 percent rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
a-1. Strictly considering tax factors, should Nitai work or repair his car if the $520 he must pay to have his car fixed is not deductible?
multiple choice
Work Correct
Repair
a-2. Given the answer in a-1 above, by how much is Nitai better or worse off?
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