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Business, 09.10.2019 22:10 littlequeenashley

Harper is considering three alternative investments of $10,000. assume that the taxpayer is in the 24% marginal tax bracket for ordinary income and 15% for qualifying capital gains in all tax years. the selected investment will be liquidated at the end of five years. the alternatives are: a taxable corporate bond yielding 5.333% before tax and the interest can be reinvested at 5.333% before tax. a series ee bond that will have a maturity value of $12,200 (a 4% before-tax rate of return). land that will increase in value. the gain on the land is classified and taxed as a long-term capital gain. the income from the bonds is taxed as ordinary income. how much must the land increase in value to yield a greater after-tax return than either of the bonds?

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Harper is considering three alternative investments of $10,000. assume that the taxpayer is in the 2...
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