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Jana just found out that she is going to receive an end-of-year bonus of $79,500. She is in the 35 percent marginal tax bracket. Calculate

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Jana just found out that she is going to receive an end-of-year bonus of $79,500. She is in the 35 percent marginal tax bracket. Calculate her income tax on this bonus. Now assume that instead of receiving a bonus, Jana receives the $79,500 as a long-term capital gain. What will be her tax? Which form of compensation offers Jana the best after-tax return? Would your calculation be different if the gain was short-term rather than long-term? Her income tax on this bonus is $ (Round to the nearest dollar.) Now assume that instead of receiving a bonus, Jana receives the $79,500 as a long-term capital gain. What will be her tax? Which form of compensation offers Jana the best after-tax return? Would your calculation be different if the gain was short-term rather than long-term? (Select the best answer below.) A. Jana will pay $11,925 ($79,500 x 15%) in long-term capital gains taxes. Due to the reduced tax rate, the short-term capital gain offers Jana the best after-tax return. Because long-term capital gains are taxed as ordinary income, she will not receive any tax benefit if she receives the bonus as a long-term capital gain. B. Jana will pay $11,925 ($79,500 x 15%) in long-term capital gains taxes. Due to the reduced tax rate, the long-term capital gain offers Jana the best after-tax return. Because short-term capital gains are taxed as ordinary income, she will not receive any tax benefit if she receives the bonus as a short-term capital gain. end Mess Click to select your answer(s)

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