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book McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver cover

McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

النسخة 3الرقم المعياري الدولي: 9780078111068
book McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver cover

McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

النسخة 3الرقم المعياري الدولي: 9780078111068
تمرين 50
{Planning} The Johnsons recently decided to invest in municipal bonds because their marginal tax rate is 40 percent.The return on municipal bonds is currently 3. percent and the return on similar taxable bonds is 5 percent.Compare the after-tax returns of the municipal and taxable bonds.
a.Which type of bond should the Johnsons select?
b.What type of bond should the Johnsons select if their marginal tax rate was 20 percent?
c.At what marginal tax rate would the Johnsons be indifferent between investing in either taxable or municipal bonds?
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Municipal Bonds
The bonds issued by loc...

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McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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