Problem
Dianna has performed very well in her salesperson's role during July 2022. Her employer wants to reward her with a cash bonus of $1,000 after the deduction of PAYE or a fringe benefit in the form of a gold bracelet to the value of $1,000 - it is Diana's choice. Diana's marginal tax rate is 33%.
Task
Prove why Dianna's employer is indifferent to providing her with the fringe benefit valued at $1,000 or the after-tax cash bonus of $1,000.