12 If Tom invests $70,000 in a taxable corporate bond that provides a 5 percent before-tax return, how much will Tom's investment be worth in either 8 or 20 years from now when the bond matures? Assume Tom's marginal tax rate is 35 percent.

$103,422; $185,731.

$105,697; $197,373.

$92,536; $140,675.

$90,410; $132,709.

None of the choices are correct.

13. Lebron received $69,300 of compensation from his employer and he received $575 of interest from a municipal bond. What is the amount of Lebron's gross income from these items?

$0.

$69,875.

$575.

$69,300.

14. Sally received $60,600 of compensation from her employer and she received $630 of interest from a corporate bond. What is the amount of Sally's gross income from these items?

$60,600.

$0.

$61,230.

$630.

15. Madison's gross tax liability is $11,450. Madison had $3,030 of tax credits available and she had $10,650 of taxes withheld by her employer. What is Madison's taxes due (or taxes refunded) with her tax return?

$0 taxes due and $0 tax refund.

$8,420 taxes due.

$800 taxes due.

$2,230 tax refund.

16. Jamison's gross tax liability is $11,550. Jamison had $2,500 of available credits and he had $8,900 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return?

$9,050 taxes due.

$150 tax refund.

$150 taxes due.

$2,650 taxes due.