Currently considering several alternatives

Assignment Help Financial Accounting

Reference no: EM13747072

Bart and Kesha are in the 39.6% tax bracket. They are interested in reducing the taxes they pay each year. They are currently considering several alternatives. For each of the following alternatives, indicate how much tax, if any, they would save.

a. Make a gift of bonds valued at $5,000 that yield $400 per year interest to their 24-year old daughter, who has no other income.

b. Sell the bonds from Part a rather than give them to their daughter, and buy tax-exempt bonds that pay 6%. Assume the bonds can be sold for an amount equal to their basis of $5,000.

c. Give $1,000 cash to a charity. Assume they itemize deduction and ignore any pahse out of itemized deductions.

d. Pay their daughter a salary of $10,000 for services rendered in their unincorporated business.

Reference no: EM13747072

Questions Cloud

Conversion costs are added uniformly over production process : The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the..

What is the probability of getting more than 12000 hits : Travelbus is an Internet-based travel agency wherein customers can see videos of the cities they plan to visit. What is the probability of getting more than 12,000 hits

Risks of incurring foreign tax in exporting goods : Assess the risks of incurring foreign tax in exporting goods from the U.S. Based on your assessment, propose a strategy to minimize or eliminate the foreign tax risk.

How revolution affect americans social equality : How did the Revolution affect Americans' expectations regarding individual rights, social equality, and the role of women in American society?

Currently considering several alternatives : Bart and Kesha are in the 39.6% tax bracket. They are interested in reducing the taxes they pay each year. They are currently considering several alternatives. For each of the following alternatives, indicate how much tax, if any, they would save.

Determine the ph of several common household items : The objective of part A in an experiment is to determine the pH of several common household items with both an indicator and pH paper. Which is more accurate? What about part B? What result. Topic example: Topic 1: The strongest acid of the common h..

Preparing to conduct business research : Build on the business problem identified in Preparing to Conduct Business Research: Part 1, which is the attached paper. This paper must have scholarly references and additional information can be found at shapeways.com.

House painted and $800 for built-in bookshelves : Ellen purchased a home in 2011 for $60,000. She paid $12,000 and borrowed $48,000. In 2012 she added a room to the house which cost $10,000. In 2013, she paid $625 to have the house painted and $800 for built-in bookshelves. As of January 1 of the cu..

The ability to read a scale is becoming a lost art : The ability to read a scale is becoming a lost art. Our Abbé refractometers use just such an old fashioned scale. With a line of people behind you waiting to use the instrument, you will need to be able to quickly and accurately read your refractive ..

User Account

All Pages