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Personal After-Tax Return Karen, a resident of Nova Scotia, has $10,000 to invest for one year. She has found two alternatives: a bond that will
Personal After-Tax Return Karen, a resident of Nova Scotia, has $10,000 to invest for one year. She has found two alternatives: a bond that will provide interest income at year-end of $400, and a common stock whose price is $50 and is expected to increase by $2.00. Ignoring risk and other factors, how much money will Karen have after taxes from each investment? Use Tables 2-8 and 2-9, and assume that Karen has taxable income of $65,000.
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