Ward and June Are in the 28% Tax Bracket

question 99

Multiple Choice

Ward and June are in the 28% tax bracket.Included in their assets is a Dell Corporation bond with a face value of $10,000.The bond pays $1,000 per year in interest.Ward and June gift the bond to their son,Wally (age 19) ,on January 1,2017.Wally is in the 10% tax bracket.Wally's taxable income from the receipt of the bond and the bond interest in 2017 is

• A)$-0-
• B)$1,000
• C)$1,500
• D)$10,000
• E)$11,000

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Definitions:

Anal Stage

A phase in Freudian psychosexual development occurring from approximately 18 months to 3 years, characterized by pleasure in controlling bowel and bladder movements.

Psychosexual Development

Freud's theory suggesting human personality development occurs through stages during childhood, each characterized by sexual pleasure in parts of the body.

Freudian Theory

Freudian Theory proposes that human behavior is influenced by unconscious desires, memories, and conflicts.

Electra Complex

A psychoanalytic theory that describes a girl's sense of competition with her mother for the affection of her father.