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On April 1, 2019, a corporation with a December 31 taxation year purchased a three-year Investment...

On April 1, 2019, a corporation with a December 31 taxation year purchased a three-year Investment certificate for $20,000. The certificate pays Interest only at the end of the three-year term but interest is compounded annually at the rate of 7%. Currently, the corporation's marginal tax rate Is 28%. However, In 2020, the marginal tax rate will decrease to 20% Pert 2 Individual An Individual makes the identical investment on April 1, 2019. The individual's marginal tax rate in 2019 is also 28% and is expected to decrease 20% In 2020. Required: calculate the interest income and the tax lability each year (2019,2020,2021,2022) for the corporation and the individual.

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