Question

PLEASE ANSWER. WILL GIVE THUMBS UP.
Consider three investors who need to partially liquidate investments to raise cash. In this case, all investments have been held for three or more years. Investor A waited for a $1,500 qualified dividend distribution from her mutual fund, and Investor B received $1,500 in interest income from a certificate of deposit. However, because Investor C could not wait for a distribution, he decided to sell $1,500 of appreciated stock shares. Assuming no commissions, no sales charges, and no state income tax, and a 28 percent federal marginal tax bracket, which investment will provide the greatest after-tax amount? Assuming no commissions, no sales charges, or state income tax, and a 28 percent federal marginal tax bracket, the investments that will have the greatest after-tax amount belong to: (Select best answer below.) O A. Investors A and B. B. Investors B and C. C. Investors A and C. D. Investors A, B, and C.

Answer 1

A	B	C
Qualified Dividend on Mutual Funds shall be exempt from tax and hence 1500 dollars shall be fully available income	Intrest received from a certificate of deposit after selling it off shall be taxabel at the federal rates, therefore it will be 1500*(1-0.28) = 1080	the stocks have been sold and there will be capital gains on the same, the tax rate is 20% + surchage+fees, in the said case net income will be 1500*(1-0.2) which is 1200

Hence A and C have the maximum income after tax,

Personal exemption per child in 2017 is dollar 4050 and hence the couple can claim an exemption of dollar 12150 (4050*3) from their personal income