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Other Fields Homework Help Accounting Topic started by: Augustus1 on Jan 11, 2017



Title: Cooper can invest $10,000 after-tax dollars in a taxable bond either outside or inside a traditional ...
Post by: Augustus1 on Jan 11, 2017
Cooper can invest $10,000 after-tax dollars in a taxable bond either outside or inside a traditional nondeductible IRA. He will hold the investment for ten years. The bond yields 6% before taxes and Cooper's marginal tax rate is 33%. If he invests directly in the bond, he will withdraw an amount of interest each year sufficient to pay taxes and leave the remaining interest in the investment. What are the after-tax accumulations in the bond and in the IRA? Cooper will not be subject to the 10% penalty tax when the IRA withdrawal occurs.


Title: Re: Cooper can invest $10,000 after-tax dollars in a taxable bond either outside or inside a ...
Post by: MsLippy on Jan 11, 2017
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Title: Re: Cooper can invest $10,000 after-tax dollars in a taxable bond either outside or inside a traditional ...
Post by: Augustus1 on Mar 19, 2017
I needed this so bad, I'm laughing right now from happiness