Andrea Houser recently inherited $500,000. She would like to invest the money and receive an after-tax return of $30,000 on the investment income. She has a number of investment alternatives available to her and she would pay 45% tax on interest, 28% tax on eligible dividends, 36% tax on non-eligible dividends, and 23% (rounded) on capital gains.
Required:
Calculate how much taxable income Andrea would need to receive in a) interest,
b) eligible dividends, c) non-eligible dividends, and d) capital gains in order to realize a $30,000 after-tax return. (Round all answers to zero decimal points.)

Question

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The Answer of Andrea Houser recently inherited $500,000. She would like to invest the money and receive an after-tax return of $30,000 on the investment income. She has a number of investment alternatives available to her and she would pay 45% tax on interest, 28% tax on eligible dividends, 36% tax on non-eligible dividends, and 23% (rounded) on capital gains.
Required:
Calculate how much taxable income Andrea would need to receive in a) interest,
b) eligible dividends, c) non-eligible dividends, and d) capital gains in order to realize a $30,000 after-tax return. (Round all answers to zero decimal points.)

Andrea Houser Recently Inherited $500,000