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Rita, Who Has Marginal Tax Rate of 39

Question 5

Multiple Choice

Rita, who has marginal tax rate of 39.6%, is planning to make a gift to her grandson who is in the lowest tax bracket. Which of the following holdings of stock would be the most tax advantageous gift from Rita's perspective?


A) Rita, who has marginal tax rate of 39.6%, is planning to make a gift to her grandson who is in the lowest tax bracket. Which of the following holdings of stock would be the most tax advantageous gift from Rita's perspective? A) B) C) D) For income tax purposes, Rita will be indifferent as to choice of stock to gift.
B) Rita, who has marginal tax rate of 39.6%, is planning to make a gift to her grandson who is in the lowest tax bracket. Which of the following holdings of stock would be the most tax advantageous gift from Rita's perspective? A) B) C) D) For income tax purposes, Rita will be indifferent as to choice of stock to gift.
C) Rita, who has marginal tax rate of 39.6%, is planning to make a gift to her grandson who is in the lowest tax bracket. Which of the following holdings of stock would be the most tax advantageous gift from Rita's perspective? A) B) C) D) For income tax purposes, Rita will be indifferent as to choice of stock to gift.
D) For income tax purposes, Rita will be indifferent as to choice of stock to gift.

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