Question

taxation individuals 2020 edition

QUESTION 8 Melinda invests $300,000 in a City of Heflin bond that pays 3 percent interest. Alternatively, Melinda colle cted the $300.000 in bed pays 4 percent interest with similar risk and other nontax characteristics to the City of Helin bond. As Melinda's marginal tax is 25 percent What is her for the City of Heflin bond? state of return QUESTION 9 Melinda invests $300,000 in a City of Heflin bond that pays 3 percent interest. Alternatively, Melinda could have invested the $300,000 in a bond recently ined by Saething. In that pays 4 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda's marginal tax rate is 25 percent. How much implicit tax does she pay on the City of Heflin bond? QUESTION 10 explicit tax would be Melinda invests $300,000 in a City of Heflin bond that pays 3 percent interest. Alternatively, Melinde could have invested the $300,000 ina bendr y pays 4 percent interest with similar risk and other notax characteristics to the City of Heflin bond. Anme Melinda's maritate is 23 percent. How have paid on the Sunething, Inc. bond? hang. In the QUESTION 11 Melinda invests $300,000 in a City of Heflin bond that pays 3 percent interest. Alternatively, Melinda could have lovested the $300.000 in a bood recently wed by S pays 4 percent interest with similar risk and other non characteristies to the City of Hellin bond. Aan Melinde alte 2 percent. Wat is here on the Surething, Inc. bond? - bit. Click Saw All Answers to me alla

Answer 1

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Question 8 Solutions Marginal Tax Rate - Interest Rale 25% for city of Heflin Bond - 3% Aften Tax Interest Rate will be = 341-0.95) a) 3X0.75 After Fax Puterest Rate will be 2.25% 700 Alternatively Heflin Bond $ 300,00 or in Bond Hence Interest Received a 300000 x 49000 Tax payable t 9000 x 2, e82950 Hence Net Return After Tax = 9000 - 2950 €) 8 6 7 500 After Tax Puterest Rate = $ 6750 xloo S00,000 7 9495 Question 9 Solutions, - Implint Tax Yayable by Melinda on city of Hellin Bona Interest Income x Tax Rate 2) 300,000 x 7 x G a) 42250.

Question lo Solution - Bond & 4% Interest Rate on Surething Puc Marginal Tax Rate - 95% luvested a $300,ooo! Anount 100 Tulenest fulome = $300,000 x 4 ( [uferest Rate) 2) $12000* Tax Rayable on such Bond & $12000 x 2 >) 83.0001 Explicit Byx Payable on Sure thing One Brad = $3,000 Cuestion is, Solution Tax late del Interest Rate a 4 % After Tax fate of feturn = 411-0.25) - 3fo Alternativer Tutexest on Susetting Bond Leceived = 4 * 3,00,0002) $170 00 Tax payable = $12000 Go 2 $3,000 Net Return on Investment after Tax aprooo [12,000-300 Return on Investment Aftea Tax a return xloo Amount Invested 2 $4000 x 100 3ele $300000