Ward and June Are in the 32% Tax Bracket

question 27

Multiple Choice

Ward and June are in the 32% tax bracket. Included in their assets is a Dell Computer Corporation bond with a face value of $10,000. The bond pays $1,000 a year in interest. Ward and June gift the bond to their son, Wally (age 19) , on January 1, 2018. Wally is in the 12% tax bracket. The 2018 net tax savings for the family unit of Ward, June and Wally related to the transfer of the bond is

• A)$-0-
• B)$120
• C)$200
• D)$320

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Definitions:

White-Collar Crime

Non-violent crime, usually involving deception or breach of trust, committed by individuals in professional roles or high social status.

Multi-Factor Approach

A method or strategy that employs multiple factors or variables in the analysis, decision-making, or problem-solving process, considering a broader range of influences.

Single-Factor Theory

An explanation for a phenomenon that identifies one dominant cause or factor.

Democide

The murder of any person or people by a government, including genocide, politicide, and mass murder.