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Problem 1 Part 1- Corporation On April 1,2023, a corporation with...

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Accounting

Problem 1
Part 1- Corporation
On April 1,2023, 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 the interest is compounded annually at the rate of 8%. Currently, the
corporation's marginal tax rate is 28%. However, in 2024, the marginal tax rate will decrease to 23%.
Part 2 Individual
An individual makes the identical investment on April 1,2023. The individual's marginal tax rate in 2023 is also 28% and is expected to
decrease to 23% in 2024.
Required:
Complete the table below to show the interest income and the tax liability each year for the corporation and the individual. Treat each
calendar year as having 365 days and ignore the implications of February 29 in a leap year.
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