Jana just found out that she is going to receive an​ end-of-year bonus of $54,000. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus. Now assume that instead of receiving a​ bonus, Jana receives the ​$54,000 as a​ long-term capital gain. What will be her​ tax? Which form of compensation offers Jana the best​ after-tax return? Would your calculation be different if the gain was​ short-term rather than long-term? Her income tax on this bonus is?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Jana just found out that she is going to receive an​ end-of-year bonus of $54,000. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus. Now assume that instead of receiving a​ bonus, Jana receives the ​$54,000 as a​ long-term capital gain. What will be her​ tax? Which form of compensation offers Jana the best​ after-tax return? Would your calculation be different if the gain was​ short-term rather than long-term?

Her income tax on this bonus is?

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