Question: Please answer the blank ones. Harper is considering three alternative investments of $10,000. Harper is in the 24% marginal tax bracket for ordinary income and

 Please answer the blank ones. Harper is considering three alternative investments

Please answer the blank ones.

Harper is considering three alternative investments of $10,000. Harper is in the 24% marginal tax bracket for ordinary income and 15% for qualifying capital gains in all tax years. The selected investment will be sold at the end of five years. The alternatives are: A taxable corporate bond yielding 5.333% before tax and the interest reinvested at 5.333% before tax. A Series EE bond that will have a maturity value of $12,200 (a 4% pretax rate of return). Land that will increase in value. The gain on the land is classified and taxed as a long-term capital gain. The interest from the bonds is taxed as ordinary income: the interest from the corporate bond as it is earned annually, but that from the Series EE bond is recognized only upon redemption. How much must the land increase in value to yield a greater after-tax return than either of the bonds? For this analysis, ignore the effect of property taxes on the land. Below are the factors for the compound amount of $1 and compound value of annuity payments at the end of five years: $1 Compounded $1 Annuity Compounded Interest Rate for Five Years for Five Years 4% 1.2167 5.4163 5% 1.2763 5.5256 When required, round your answer to the nearest dollar. a. The taxable bond and reinvested earnings will accumulate at an after-tax rate of 4% The after-tax value of the taxable bond and reinvested earnings will be $ be taxed each year. b. The income from the Series EE bond will not The after-tax value of the Series EE bond will be $ c. Because the gain on the land will be taxed as a long-term capital gain, the sales proceeds less 15% exceed d. Therefore, the land must increase in value by at least of the bonds. of the appreciation must to yield a greater after-tax return than the investment in either

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