Bonnie's employer provides her with an annual dinner club membership costing $5,000. her marginal tax rate is 24 percent. her employer has a marginal tax rate of 21 percent. what is bonnie's after-tax benefit

$3,800

Explanation:

The computation of the after-tax benefit is shown below:

= Annual dinner club membership cost - annual dinner club membership cost × her marginal tax rate

= $5,000 - $5,000 × 24%

= $5,000 - $1,200

= $3,800

We simply deduct her tax expense from the annual dinner club membership cost so that the accurate amount can come.

All other information which is given is not relevant. Hence, ignored it

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