Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:

Name: Barb Hotchkins is in the 28 percent tax bracket. A tax-exempt employee benefit with a value of $500 would have a tax-equivalent value of:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The tax-equivalent value is calculated by dividing the tax-exempt value by (1 - tax rate). So, $500 / (1 - 0.28) = $694.44, which rounds to $694.

Barb Hotchkins Is in the 28 Percent Tax Bracket