question archive 1] (8 Marks] You are contemplating making an investment with vour saving and you would like to make the best investment possible
1] (8 Marks] You are contemplating making an investment with vour saving and you would like to make the best investment possible
Subject:LawPrice: Bought3
1] (8 Marks] You are contemplating making an investment with vour saving and you would like to make the best investment possible. Required: Given below are 5 separate investment opportunities. You will make the investment on January 1, 2021 . Calculate the after tax income you would receive from each investment. You can ignore the provincial income taxes. Show all calculations. Amount of funds available for investment $54,000 Marginal tax bracket 25.0% a} Investment option #1 is to put the funds in a high interest saving account (non—registered account] at your local bank Interest Rate on High Interest Saving Account 4% b) Investment option #2 is to invest in shares from a Canadian Company in a Non—Registered Account. Eligible Dividends would be received in the amount of $2,160 c} Investment option #3 is to invest in shares from a Canadian Company in a Non—Registered Account. Non—eligible Dividends would be received in the amount of $2,150 d) Investment option lid is to invest in Bonds inside a TFSA {assume you have suf?cient TSFA room to make this investment} Interest Rate on the bonds are 4% e} Investment option #5 is to invest in an offshore account in Hong Kong. Dividend received from Hong Kong in Canadian dollars $2,160 This amount is net of a 5% withholding tax paid to the Hong Kong government.
