Jana just found out that she is going to receive an end-of-year bonus of $54,000. 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 $54,000 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?
Jana just found out that she is going to receive an end-of-year bonus of $54,000. 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 $54,000 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?
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 13DQ
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Jana just found out that she is going to receive an end-of-year bonus of $54,000. 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 $54,000 as a long-term
Her income tax on this bonus is?
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