1. Dana intends to invest $56,000 in either a Treasury bond or a corporate bond. The Treasury bond yields 5 percent before tax and the corporate bond yields 6 percent before tax.

a-1. Assuming Danas federal marginal rate is 24 percent and her marginal state rate is 5 percent, How much interest after-tax would Dana earn by investing in the corporate bond? (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)

b-1. If she were to move to another state where her marginal state rate would be 10 percent, How much interest after-tax would Dana earn by investing in the corporate bond as per requirement b-1? (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)

Q2:

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $64,800. Meg works part-time at the same university. She earns $31,400 a year. The couple does not itemize deductions. Other than salary, the Comers only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round final answers to the nearest whole dollar amount.)

a. What is the Comers tax liability for 2018 if they report the following capital gains and losses for the year?

Short-term capital gains

$

9,080

Short-term capital losses

(2,080

)

Long-term capital gains

15,150

Long-term capital losses

(6,150

)

2.What is the Comers tax liability for 2018 if they report the following capital gains and losses for the year?

Short-term capital gains	$	1,500
Short-term capital losses		0
Long-term capital gains		13,160
Long-term capital losses		(10,080	)