Babydog8330 Babydog8330

13-12-2022
Business

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Trent Inc. needs an additional worker on a multiyear project. It could hire an employee for a $65,000 annual salary. Alternatively, it could engage an independent contractor for a $72,000 annual fee. If Trent's income tax rate is 21 percent, which option minimizes the after-tax cost of obtaining the worker?

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