conceptsinfederaltax Windows 10Print Screen l Activate Yo

?? concepts-in-federal-tax × Windows 10-Print Screen l ? Activate Your Copy of Drive Shopping Cart G pri nt screen not working wi ? ? ? ? ? https://viewer.gcu.edu/TTRYOX 148 % ?? 169 or 912 ??? NING 108. Nick and Jolenc are marricd. Nick is 61 and rctired in 2012 from his job with Amalgamated Company. Jolenc is 56 and works part-timc as a spccial cducation teacher. Nick and Jolene have a substantial amount of investment savings and would like to reorganize ments. They give you the following list of projected cash receipts for 2012 it to achieve the best after-tax return on their invest Jolene\'s salary Nick\'s pension fully taxable Interest incomc Dividend income Social Security benefits Farmcr\'s Fund annuity $13,000 12,500 4,000 2,500 7,000 6,000 In addition, Nick tells you that hc owns a duplcx that hc rents out. The duplex rents for 2013 are $18,000, and Nick estimates expenses of $22,000 related to the duplex. The annuity was purchased 18 years ago for S20,000, and pays $500 per month for 10 years. Nick and Jolene\'s investments consist of the following 6-month certificates of deposit (CDs) 1,000 shares of Lardee\'s common stock (current $100,000 10,000 market value $7 per share, projected 2013 dividend-$1 per share)- cost 2,000 sharcs of Corb Company common stock 20,000 (current markct valuc $20 pcr sharc, projccted 10:30 PM O Type here to search ^???41) 7752018 E? |

Solution

Calculation of Taxable Income A Income 45500 (13500+12500+4000+2500+7000+6000) Lardee\'s stock 1000 (1000*1)-Dividend Corb Stock 1500 (2000*0.75)-dividend Loss on Duplex -4000 (18000-22000) Deductions -12350 Taxable Income 31650 Tax @ 10.74% 3399.21 B CD\'s(Taxable) (50000*2) 100000 Interest (50000*2)*4% 4000 Interest on CD 4000 Interest on non taxable bond 100000*3% 3000 Tax @ 10.74% on 4000 429.6 After Tax Interest 4000-430 3570 Percentage Return 0.0357 3.57% Hence, certificate of deposits provide a better return C As per Part B , Return on certificate of deposits provide better return Income 45500 (13500+12500+4000+2500+7000+6000) Lardee\'s stock 1000 (1000*1)-Dividend Corb Stock 1500 (2000*0.75)-dividend Capital Gain(2000*(20-10)) 20000 Interest on CD\'s(2000*20*4%) 16000 Loss on Duplex -4000 (18000-22000) Deductions -12350 Taxable Income 67650 Tax @ 10.74% 7265.61