Jennifer is considering purchasing a residence that will provide a $30,000 tax deduction for mortgage interest and property taxes. Her marginal tax rate is 28%, average tax rate is 24% and effective tax rate is 21%. Jennifer's tax savings from purchasing the residence is:

6300

7200

8400

21600

Eds marginal tax rate is 30 percent. If Ed invests $100,000 in a taxable corporate bond that provides a 6 percent before-tax return, how much will Ed's investment be worth in either 9 or 25 years from now when the bond matures?

A.	$118,264; $300,431.

B.	$168,948; $429,187.

C.	$144,813; $279,700.

D.	$77,495; $113,750.

E.	None of these.

Which of the following is false regarding use taxes?

A)	A use tax is relatively hard to enforce compared to a sales tax.

B)	Use taxes attempt to eliminate any tax advantage of purchasing goods out of state.

C)	Use taxes discourage taxpayers from buying goods out of state to avoid paying sales tax in their home state.

D)	A use tax is generally a progressive tax.

E)	All of these are true.