Rey deducted $2,400 of state income taxes on her tax return…

Rey deducted $2,400 of state income taxes on her tax return last year. This year she received a state income tax refund of $170. What amount of the refund, if any, should Rey include in her gross income if last year her total itemized deductions exceeded the standard deduction by $350?

Dak invests $250,000 in a city of Starkville bond that pays…

Dak invests $250,000 in a city of Starkville bond that pays 7 percent interest. Alternatively, Dak could have invested the $250,000 in a bond recently issued by Cowboys, Inc. that pays 9 percent interest with similar risk as the city of Starkville bond. Assume that Dak’s marginal tax rate is 24 percent.What is Dak’s after-tax rate of return on the city of Starkville bond?