Question

Bob 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:
a) $694
b) $528
c) $500
d) $360
IS C CORRECT ANSWER?THANK YOU:)))

Answer 1

NO.
500 = A - A x 0.28 = A (1-.28) = .72A
so,
A = 500/0.72 = 694

Answer 2

What does this have to do with psychology?