You are contemplating making an investment with your saving and you would like to make the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are contemplating making an investment with your saving and you would like to make the best investment possible. Required: Given below are 5 separate investment opportunities. You will make the investment on January 1, 2021. Calculate the after tax income you would receive from each investment. You can ignore the provincial income taxes. Show all calculations. Amount of funds available for investment Marginal tax bracket Interest Rate on High Interest Saving Account a) Investment option #1 is to put the funds in a high interest saving account (non-registered account) at your local bank Eligible Dividends would be received in the amount of b) Investment option #2 is to invest in shares from a Canadian Company in a Non-Registered Account. $54,000 Non-eligible Dividends would be received in the amount of 26.0% c) Investment option #3 is to invest in shares from a Canadian Company in a Non-Registered Account. Interest Rate on the bonds are e) Investment option #5 is to invest in an offshore account in Hong Kong. Dividend received from Hong Kong in Canadian dollars 4% d) Investment option #4 is to invest in Bonds inside a TFSA (assume you have sufficient TSFA room to make this investment) This amount is net of a 5% withholding tax paid to the Hong Kong government. $2,160 $2,160 4% $2,160 You are contemplating making an investment with your saving and you would like to make the best investment possible. Required: Given below are 5 separate investment opportunities. You will make the investment on January 1, 2021. Calculate the after tax income you would receive from each investment. You can ignore the provincial income taxes. Show all calculations. Amount of funds available for investment Marginal tax bracket Interest Rate on High Interest Saving Account a) Investment option #1 is to put the funds in a high interest saving account (non-registered account) at your local bank Eligible Dividends would be received in the amount of b) Investment option #2 is to invest in shares from a Canadian Company in a Non-Registered Account. $54,000 Non-eligible Dividends would be received in the amount of 26.0% c) Investment option #3 is to invest in shares from a Canadian Company in a Non-Registered Account. Interest Rate on the bonds are e) Investment option #5 is to invest in an offshore account in Hong Kong. Dividend received from Hong Kong in Canadian dollars 4% d) Investment option #4 is to invest in Bonds inside a TFSA (assume you have sufficient TSFA room to make this investment) This amount is net of a 5% withholding tax paid to the Hong Kong government. $2,160 $2,160 4% $2,160
Expert Answer:
Answer rating: 100% (QA)
Answer a Investment option 1 is to put the funds in a high interest saving account nonregistered acc... View the full answer
Related Book For
Essentials of business communication
ISBN: 978-1111821227
8th Edition
Authors: Mary Ellen guffey, Dana loewy
Posted Date:
Students also viewed these accounting questions
-
A commercial passenger aircraft manufacturer would like to make aircraft fuselages with fiber-reinforced polymer composite materials. The required production rate is 10 units per month. The fuselage...
-
It is tax time and you would like to make a tax-deductible contribution to an individual retirement account (IRA). Using the information provided at MyLab Finance, find the future value of an IRA...
-
Andy and Jenelle, both age 69, would like to make contributions to their registered retirement savings plans (RRSPs). For the current year, Andys RRSP contribution limit is $8,000 and Jenelles RRSP...
-
An increase in investment increases consumption in the short run, has no effect on consumption in the long run, and has an ambiguous effect on consumption in the Solow model of the very long run,...
-
Why do some developing countries adopt currency boards? Why do others dollarize their monetary systems?
-
Fill in the blank(s) to correctly complete each sentence. If a function has an inverse, then the graph of -1 may be obtained by reflecting the graph of across the line with equation _________.
-
Which of the following prevents a company from switching its inventory costing method to a different method each year? a. Disclosure principle b. Consistency principle C. Matching principle d....
-
Bonds of Zello Corporation with a par value of $1,000 sell for $960, mature in 5 years, and have a 7% annual coupon rate paid semiannually. a. Calculate the: i. Current yield. ii. Yield to maturity...
-
Brandon Ramirez wants to set up a scholarship at his alma mater.He is willing to invest $344,000 in an account earning 16 percent.What will be the annual scholarship that can be given from this...
-
Greg Gordon manages the 10,000-square-foot multilevel laser tag arena at LazerLite. This arena combines cutting-edge computer technology with action-oriented team play; in a futuristic environment...
-
As part of its long-term strategic plan, Greenwater Inc. purchased a 34% interest in the common shares of one of its suppliers, Prosperous Company. The purchase price of the investment was $928,330....
-
Role models are sources of inspiration for your leadership style. The ways in which your role models approach their responsibilities and conduct their activities shows you how you might lead and what...
-
Depreciation: Straight-Line and Double Declining Balance A piece of heavy equipment acquired on January 1 at a cost of $261,000 has an estimated useful life of 25 years. Assuming that it will have no...
-
The government has and continues to use various approaches and reforms in the budget to address many economic challenges faced by the country. Use three key reforms as an example to show government's...
-
Specific references for academic papers or articles related to the trends and challenges in new product design in 2021, I recommend conducting a search on reputable academic databases like Google...
-
1. Summarise the approach that you're recommending for your workplace or ABRG to implement for its marketing and communications. Include the profiles created and the different marketing methods to be...
-
A large distributor has 9 retail outlets. Currently each outlet manages its ordering independently. Demand at each retail outlet averages 800 per day. Assume there are 250 days per year. Each unit of...
-
Calculate I, , and a for a 0.0175 m solution of Na 3 PO 4 at 298 K. Assume complete dissociation. How confident are you that your calculated results will agree with experimental results?
-
The following progress report has faults in grammar, punctuation, spelling, number form, wordiness, and word use. Use standard proofreading marks (see appendix b) to correct the errors. when you...
-
Why is it important for business and professional students to develop good communication skills, and why are writing skills especially essential?
-
Recall a time when you experienced a problem as a result of poor communication. What were the causes of and possible remedies for the problem?
-
What are the three different types of qualified audit opinion? Discuss the circumstances that may cause these qualifications.
-
What is the effect of a fundamental uncertainty on the auditors report?
-
Discuss the work that an auditor performing an initial engagement needs to perform on opening balances.
Study smarter with the SolutionInn App