The plant union is negotiating with the eagle company, which is on the verge of bankruptcy. eagle has offered to pay for the employees' hospitaliztion insurance in exchange for a wage reduction. the employees each currently pay premiums of $4,000 a year for their insurance. which of the following is correct:

a. if an employee's wages are reduced by $5,000 and the employee is in the 28% marginal tax bracket, the employee would benefit from the offer.
b. if an employee's wages are reduced by $4,000 and the employee is in the 15% marginal tax bracket, the employee would benefit from the offer.
c. 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.
d. a., b., and c.
e. none of these.

d. a., b., and c.

Explanation:

Reduction in pay (a)Marginal tax (b)Reduction in tax (c = a x b)

A. $5000                            0.28                              $1,400

B. $4000                             0.15                                  $600

C. $6000                              0.35                                $2100

Reduction in After-tax Income (d = a - c)

A. $3,600

B. $3,400

C. $3,900

this means that all the above a, b, and c options are correct because in all the three cases, the reduction in after-tax pay of the employee will be less than $4000 value of the nontaxable insurance premium to be paid by the employer which would ultimately benefit the employee.

its kinda hard to answer this when we dont have all the information that we need.

answer founder's agreement;