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A taxpayer can invest $10,000 in a taxable 10-year bond that yields an annual pretax return of 6 percent or buy land (capital asset) for
A taxpayer can invest $10,000 in a taxable 10-year bond that yields an annual pretax return of 6 percent or buy land (capital asset) for $10,000 that is expected to increase at an annual pretax return of 4 percent. The taxpayer expects to hold the bond and the land for 10 years and expects to pay tax on capital gains taxes of 25 percent throughout the 10-year period. Which investment is preferable?(This is the full question, no other material is needed to answer correctly)
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