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Author Question: Daniel plans to invest $20,000 in either a corporate bond paying 5% or a tax-exempt bond with a 4% ... (Read 140 times)

imowrer

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on: Sep 13, 2020

Question 1

While certain income of a minor is taxed at the parent's tax rate, discuss how income shifting may still be accomplished and any constraints that may exist on income shifting.

Question 2

Daniel plans to invest $20,000 in either a corporate bond paying 5% or a tax-exempt bond with a 4% interest rate. The bonds have an equivalent level of risk. Daniel has a 33% marginal tax rate and wants to maximize his after-tax earnings. Daniel should
◦ invest in the corporate bond due to its higher stated interest rate.
◦ invest in the tax-exempt bond since its yield is more than the after-tax return on the corporate bond.
◦ invest in the corporate bond because its after-tax earnings are more than the return on the tax-exempt bond.
◦ allocate his money equally between the two investments.
Federal Taxation 2017 Individuals ¦ Pope, Rupert, Anderson ¦ 30th Edition
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Marked as best answer by imowrer on Sep 13, 2020

akemokai

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Reply #1 on: Sep 13, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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imowrer

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Reply 2 on: Sep 13, 2020
Excellent

patma1981

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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