Identify the tax issue or issues suggested by the following situation, and state each issue in the

Question:

Identify the tax issue or issues suggested by the following situation, and state each issue in the form of a question.
Mr. and Mrs. TR own an investment yielding a 4.25 percent after-tax return. Their friend Ms. K is encouraging them to sell this investment and invest the proceeds in her business, which takes advantage of several favorable tax preferences. Consequently, Ms. K’s after-tax return from this business is 7 percent.