Stella Flier Has Received an Inheritance of $100,000

question 6

Essay

Stella Flier has received an inheritance of $100,000. She is trying to decide what to do with this mon
come to you for some advice. She has an excellent credit rating and no outstanding debts. She would buy a $225,000 house and invest $100,000 in bonds as a safety net.
Required:
How could Stella minimize her tax liability, assuming only the facts given?

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Definitions:

Containment

A strategic policy aimed at preventing the expansion of an adversary's influence or ideology, often used in the context of the Cold War.

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, which lasted from the end of World War II until the dissolution of the Soviet Union in 1991.

Monroe Doctrine

A principle of US foreign policy that opposed European colonialism in the Americas and stated that any intervention by external powers in the politics of the Americas is a potentially hostile act against the US.

Western Hemisphere

The Western Hemisphere encompasses all territories located west of the Prime Meridian to the International Date Line, including both the Americas and surrounding waters.