Stella Flier Has Received an Inheritance of $100,000

question 1

Essay

Stella Flier has received an inheritance of $100,000. She is trying to decide what to do with this money and has come to you for some advice. She has an excellent credit rating and no outstanding debts. She would like to 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:

Complementary Resources

Goods or services that enhance the value of another good or service when used in conjunction with it.

Immigration

The process by which individuals move from one country to live permanently in another.

Wage Rate

The standard amount of compensation given to employees for their labor, typically expressed per hour, day, or piece produced.

Production Costs

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