Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. rasps cousin grant recently experienced a family f

Rasps cousin Grant recently experienced a family financial crisis and he needs $5,000 to get...

50.1K

Verified Solution

Question

Accounting

Rasps cousin Grant recently experienced a family financial crisis and he needs $5,000 to get a reliable car. The Berry's would like to transfer some money to Grant to help him get back on his feet. They have the following assets to choose from and would like to hear your advice on which is the best option to transfer, assuming they want to save their tax first and then save Grants tax, if possible. The market is currently strong. The Berry's income tax bracket is expected to be 33%. Grants tax bracket is expected to be 15%. Compare these options with numbers (costs to the Berry's and Grant).

a. Cash of $5,000;

b. Mutual fund ABC of $5,000, with a long-term capital gain of $800;

c. Corporate bond XYZ of $5,000 that they bought at $4,500 a few years ago that has a coupon rate of 5% annually;

d. Apple stock that they just bought a week ago and paid $4,955.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

7. Subway restaurants closely represent a a. Product layout b. Fixed layout c. Continuous layout d. Process layout . 8. The...

Operations Management
Q

Assume that you manage a risky portfolio with an expected rate of return of 20% and...

Finance
Q

Assume that you are appointed by a university as the technical manager of the University's Formula-SAE-A...

Mechanical Engineering
Q

Irwin, Inc., constructed a machine at a total cost of $45 million. Construction was completed at...

Accounting
Q

3 A steel ring of radius r and cross sectional area A is fitted on...

Physics
Q

6 Graphing a cosecant function using transformations 21 points csc 3x y 1 State the...

Geometry
Q

You take a job as a Sales Associate and are offered one of two options...

Basic Math
Q

Find the volume of the solid under the graph of f x y over the...

Calculus
Q

The following information was taken from the segmented income statement of Restin, Inc., and the...

Accounting
Q

will some one plesse help with these contracts? 1. When you draft...

Finance
Q

The yield to maturity for 10-year bonds is as follows for four different bond rating...

Accounting
Q

If you get a lease with a $10.00/sf expense stop the total reimbursement a year...

Finance