Donna is married to Don and they have two children, Danielle, age 25, and Susan, age 15. Donna

earns $250,000 annually while Don earns $100,000. Danielle works full time and earns $30,000 annually

while Susan is still in high school and doesn't have any income. Donna has been looking for ways to pay

less tax and a friend of hers has suggested that she take advantage of the lower tax brackets of her

husband and children. With $100,000 of extra cash in her bank account she is considering the following

options and would like your advice as her accountant. Assume the following combined tax rates:

Donna 53%

Don 41%

Danielle 25%

Susan ---

1. Loan the 100,000 to her husband at 0% interest. He would invest it in a bond earning 3%

2. Give the 100,000 to her husband. He would invest it in a bond earning 3%

3.Loan the 100,000 to her 15 year old daughterat 0% interest. He would invest it in a bond earning 3%

4. Give the 100,000 to her 15 year old daughter. She would invest it in a bond earning 3%

5.Loan the 100,000 to her 25 year old daughter at 0% interest. He would invest it in a bond earning 3%

6. Give the 100,000 to her 25 year old daughter. She would invest it in a bond earning 3%