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Stella Flier Has Received an Inheritance of $100,000

Question 5

Essay

Stella Flier has received an inheritance of $100,000. She is trying to decide what to do with this mon
come to you for some advice. She has an excellent credit rating and no outstanding debts. She would buy a $225,000 house and invest $100,000 in bonds as a safety net.
Required:
How could Stella minimize her tax liability, assuming only the facts given?

Correct Answer:

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Stella could use the $100,000 for a down...

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