After-tax cost of these employment-related expenses

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Mr. King is employed as a plumber by MBV Services. This year, Mr. King paid a $225 fee to renew his state-issued plumber’s license and $1,275 for supplies that he uses on the job. In each of the following cases, compute Mr. King’s after-tax cost of these employment-related expenses. a. Mr. King received no reimbursement from his employer. His AGI is $41,000, he itemizes deductions, and his marginal tax rate is 15 percent. b. Mr. King received a $1,000 reimbursement from his employer. His AGI is $41,000, he takes the standard deduction, and his marginal tax rate is 15 percent. c. Mr. King received no reimbursement from his employer. His AGI is $87,000, he itemizes deductions, and his marginal tax rate is 25 percent.

Reference no: EM131347737

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