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Unformatted text preview: 4) a. Cash inflows: $4,950 cash outflows: $4,357 b. net cash flow: $593 c. There is not a shortage d. She could use the surplus for short-term investments. 9) a. $196,000 b. Tax on interest income $8,000 After tax on interest income $ 12,000 c. Tax on dividend $ 2,400 After tax dividend income $17,600 d. The tax on interest is calculated by multiplying income from interest by the tax bracket. Then you subtract the tax from the income to get the after tax income from interest. The tax on dividend is found by multiplying the income from dividends by (1-(% of dividend exclusion rate). Then you subtract this number from the income from dividends to get the after tax dividend income. e. Total tax liability is $206,400 11) a. Capital gain on asset X= $250 Capital gain on asset Y= $5,000 b. Tax on sale of asset X= $100 Tax on sale of asset Y= $2,000...
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This note was uploaded on 02/02/2009 for the course BUSG 1303 taught by Professor Schwartz during the Fall '08 term at University of Cincinnati.
- Fall '08