1. Thoroughly explain the general, overall effect on stock
prices of a corporate top tax rate decrease from 35% to 21%. (In
2017, the top average federal income tax rate faced by corporations
reached asymptotically close to 35%. In 2018, there is only one
federal income tax bracket for corporations, and the rate is
21%.)
1. Explain the tax effect to the corporation and to the sole
shareholder.
XYZ Corporation has one shareholder. The shareholder’s tax basis
in his shares is $60,000. Corporate E&P BEFORE the effects of
any distribution is $10,000. The corporation distributes the
following property: The cororation distributes land with FMV of
$120,000 and a tax basis to the corporation of $70,000.
Please explain the methodology for assessing property and
calculating property tax for a residence. Use examples with
calculations as part of your answer.
By relying on the IS LM Model explain what will be the effect of a
tax cut policy on the equilibrium level of income. Explain in
detail the different steps, how does this policy impact the
investment?
You will have a property tax payment due in 12 months that will
cost $5,618. How much do you have to invest today to have just
enough to pay your property tax bill if your investments earn 5.82%
APR (compounded monthly)?