MCGRAW-HILL'S TAX.OF INDIV.+...(LL)2020
20th Edition
ISBN: 9781260432374
Author: SPILKER
Publisher: MCG
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Question
Chapter 15, Problem 51P
a.
To determine
Compute M’s after-tax
b.
To determine
Compute M’s after-tax cash flow from the entity’s business income and other forms of compensations if M received a salary of $100,000. Assume all the business income was allocated and distributed to M.
c.
To determine
Compute M’s after-tax cash flow from the entity’s business income and other forms of compensations if M received a salary of $20,000. Assume all the business income was allocated and distributed to M.
d.
To determine
Determine the compensation combination that generated the most after-cash flow for M. State the contributing factors that favoured this combination.
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[The following information applies to the questions displayed below.]
Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock (Nasdaq:
MSFT) over the years:
Date
Purchased Shares
7/10/2014
640
Basis
$ 34,560
4/20/2015
540
32,292
1/29/2016
740
11/02/2017
490
35,224
26,068
If Dahlia sells 1,520 shares of Microsoft for $112,480 on December 20, 2024, what is her capital gain or loss in each of the
following assumptions?
Note: Do not round intermediate calculations.
a. She uses the FIFO method.
✓ Answer is complete but not entirely correct.
Capital gain
$ 27,500
Dana intends to invest $32,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax, and the corporate bond yields 6 percent before tax. Assume Dana's federal marginal rate is 24 percent and she itemizes deductions.
Required:
a-2. How much interest after-tax would Dana earn by investing in the corporate bond?
b-2. How much interest after-tax would Dana earn by investing in the corporate bond as per requirement b-1?
Chapter 15 Solutions
MCGRAW-HILL'S TAX.OF INDIV.+...(LL)2020
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