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Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $2,690 interest on a debt instrument this year. Assume that
Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $2,690 interest on a debt instrument this year. Assume that Mrs. Nunn lives in New Jersey, which taxes the interest on bonds issued by state and local jurisdictions outside New Jersey. Required: a. If Mrs. Nunn's state income tax rate is 7 percent, compute her New Jersey tax on the $2,690 interest assuming that the debt instrument was a 30-year General Electric corporate bond. b. If Mrs. Nunn's state income tax rate is 7 percent, compute her New Jersey tax on the $2,690 interest assuming that the debt instrument was a U.S. Treasury note. c. If Mrs. Nunn's state income tax rate is 7 percent, compute her New Jersey tax on the $2,690 interest assuming that the debt instrument was a City of Memphis municipal bond. Complete this question by entering your answers in the tabs below. Required A Required B Required C If Mrs. Nunn's state income tax rate is 7 percent, compute her New Jersey tax on the $2,690 interest assuming that the debt instrument was a 30-year General Electric corporate bond. Note: Round your final answer to the nearest whole dollar amount. New Jersey tax < Required A Required B >
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