Mt. Fuentes has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 3.5 percent annual interest or corporate bonds paying 4.75 percent annual interest. The two investments have the same risk. Required: a1. Assume Mr. Fuentes's marginal tax rate is 32 percent. What is his after-tax yield on the municipal bonds? a2. What is his after-tax yield on the corporate bonds? a3. Which investment should Mr. Fuentes make? b1. Assume Mr. Fuentes's marginal tax rate is 12 percent. What is his after-tax yield on the municipal bonds? b2. What is his after-tax yield on the corporate bonds? b3. Which investment should Mr. Fuentes make? Complete this question by entering your answers in the tabs below. a1. Assume Mr. Fuentes's marginal tax rate is 32 percent. What is his after-tax yield on the municipal bonds? a2. What is his after-tax yield on the corporate bonds? Note: Report percentage answers rounded to two decimal places (for example, 0.3261 is 32.61% ). Do not round intermediate calculations. Nortiwest Company has average gross receipts of $50 million annually. This year, Northwest incurred $10.5mallion of net business nterest and has adjusted taxable income of $29 million. Required: Compute Northwest's current deduction for business interest and the amount of any business interest carryforward. Vote: Enter your answers in dollars not in millions of dollars. Besito Company, a calendar year, cash basis taxpaycr, leases lawn and garden equipment. During December, it recelved the following cash payments. To what extent does each payment represent current taxable income to Besito? Required: a. $676 repayment of a loan from an employee. Besito loaned $650 to the employee six months ago, and the employee repaid the loan with interest b. $750 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $10,300 short-term loan from a local bank. Besito gave the bank a written note to repay the loan in one year at 4 percent interest d. $1,036 prepaid rent from the customer described in part (b). The rent is $14 per day for the 74 day period from December 17 through February 28. For all requirements, leave no cells blank - be certain to enter "o- wherever required. Firm Q operates a cash basis consulting business. In October, Firm Q billed a client for $27,400 of consulting services. In November, the client settied the bill by paying $12,000 cash and transferring marketable securities worth $15,400 to Firm Q. Required: How much taxable income does Firm Q recognize on settlement of the bill? RTY is a calendar year corporation. On December 12, RTY billed a client $17,800 for services rendered during October and November. It had not recelved payment by December 31. On December 10, RTY received a $4,000 check from a tenant that leases office space from the corporation. The payment was for next year's January and Fobruary rent. Required: a. If RTY is a cash basis taxpayer, how much income should it recognize from the given transactions this year? b. If RTY is an accrual basis taxpayer, how much income should it recognize from the given transactions this year? Complete this question by entering your answers in the tabs below. If RTY is a cash basis taxpayer, how much income should it recognize from the given transactions this year? Mt. Fuentes has $15,000 to invest. He is undecided about putting the money into tax-exempt municipal bonds paying 3.5 percent annual interest or corporate bonds paying 4.75 percent annual interest. The two investments have the same risk. Required: a1. Assume Mr. Fuentes's marginal tax rate is 32 percent. What is his after-tax yield on the municipal bonds? a2. What is his after-tax yield on the corporate bonds? a3. Which investment should Mr. Fuentes make? b1. Assume Mr. Fuentes's marginal tax rate is 12 percent. What is his after-tax yield on the municipal bonds? b2. What is his after-tax yield on the corporate bonds? b3. Which investment should Mr. Fuentes make? Complete this question by entering your answers in the tabs below. a1. Assume Mr. Fuentes's marginal tax rate is 32 percent. What is his after-tax yield on the municipal bonds? a2. What is his after-tax yield on the corporate bonds? Note: Report percentage answers rounded to two decimal places (for example, 0.3261 is 32.61% ). Do not round intermediate calculations. Nortiwest Company has average gross receipts of $50 million annually. This year, Northwest incurred $10.5mallion of net business nterest and has adjusted taxable income of $29 million. Required: Compute Northwest's current deduction for business interest and the amount of any business interest carryforward. Vote: Enter your answers in dollars not in millions of dollars. Besito Company, a calendar year, cash basis taxpaycr, leases lawn and garden equipment. During December, it recelved the following cash payments. To what extent does each payment represent current taxable income to Besito? Required: a. $676 repayment of a loan from an employee. Besito loaned $650 to the employee six months ago, and the employee repaid the loan with interest b. $750 deposit from a customer who rented mechanical equipment. Besito must return the entire deposit when the customer returns the undamaged equipment. c. $10,300 short-term loan from a local bank. Besito gave the bank a written note to repay the loan in one year at 4 percent interest d. $1,036 prepaid rent from the customer described in part (b). The rent is $14 per day for the 74 day period from December 17 through February 28. For all requirements, leave no cells blank - be certain to enter "o- wherever required. Firm Q operates a cash basis consulting business. In October, Firm Q billed a client for $27,400 of consulting services. In November, the client settied the bill by paying $12,000 cash and transferring marketable securities worth $15,400 to Firm Q. Required: How much taxable income does Firm Q recognize on settlement of the bill? RTY is a calendar year corporation. On December 12, RTY billed a client $17,800 for services rendered during October and November. It had not recelved payment by December 31. On December 10, RTY received a $4,000 check from a tenant that leases office space from the corporation. The payment was for next year's January and Fobruary rent. Required: a. If RTY is a cash basis taxpayer, how much income should it recognize from the given transactions this year? b. If RTY is an accrual basis taxpayer, how much income should it recognize from the given transactions this year? Complete this question by entering your answers in the tabs below. If RTY is a cash basis taxpayer, how much income should it recognize from the given transactions this year