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alexgriva [62]
3 years ago
14

An investor in the 32% tax bracket is considering two investment options of equal risk: a corporate bond that yields 8.25% and a

municipal (muni) bond that yields 4.75%. Assuming the investor will select the bond with the highest yield, which bond should this investor choose
Business
1 answer:
Gala2k [10]3 years ago
7 0

Answer: Corporate bond

Explanation:

It should be noted that the municipal bond aren't taxable. Therefore, its yield will be 4.75%.

On the other hand, the After Tax Cost of the yield of the corporate bond will be:

= Yield × (1-Tax Rate)

= 8.25% × (1-35%)

= 8.25% × 65%

= 5.36%

Therefore, the Corporate Bond should be chosen since it has a higher yield.

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Answer:

December 31, year 9

Explanation:

Here, we want to state that date that is possible for Milo to acquire qualified replacement property.

In order to avoid being taxed on a gain resulting from an involuntary conversion, the property subject to the conversion must be replaced within a specified time, measured from the end of the calendar year in which the proceeds are received.

Generally, the period is 2 years, but it is 3 years when the involuntary conversion results from government condemnation or eminent domain and is extended to 4 years when the loss is in connection with a declared federal disaster area.

We are told from the question that Milo received the recovery on January 2, Year 5, the property would have to be replaced within 4 years from the end of Year 5 or by December 31, Year 9

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3 years ago
The fundamental limitation of a matrix structure is that it ________.
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If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would
Natasha2012 [34]

Answer: Market penetration

Explanation:

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8 0
3 years ago
Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Departm
kifflom [539]

Answer and Explanation:

The Journal entry is shown below:-

Work in progress Dr, $24,000

        To Manufacturing Overhead $24,000

(Being the overhead assigned is recorded)

For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead

Working note

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= $4,800 × $5

= $24,000

5 0
3 years ago
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