To determine which investment provides the greatest after-tax amount, we need to analyze the tax treatment of the income received by each investor:

1. Investor A (Qualified Dividend Income of $1,000):

   • Qualified dividends are taxed at the long-term capital gains rate. Since the other taxable income is $100,000, the investor likely falls in the 15% capital gains tax bracket.
   • So, tax on the dividend = $1,000 \times 0.15 = 150$.
   • After-tax amount = $1,000 - 150 = 850$.

2. Investor B (Interest Income of $1,000):

   • Interest income is taxed as ordinary income. With other taxable income of $100,000, Investor B is likely in the 24% tax bracket for ordinary income.
   • Tax on interest = $1,000 \times 0.24 = 240$.
   • After-tax amount = $1,000 - 240 = 760$.

3. Investor C (Capital Gains of $1,000):

   • Long-term capital gains are taxed at the same rate as qualified dividends, which in this case would also be 15%.
   • Tax on capital gains = $1,000 \times 0.15 = 150$.
   • After-tax amount = $1,000 - 150 = 850$.

Conclusion:

• Investors A and C receive the highest after-tax amount of $850 each, while Investor B receives $760.
• Thus, Investors A and C will have the greatest after-tax amount.

Correct answer: C. Investors A and C.

Do you want further details or have any questions?

Here are 5 related questions for further exploration:

1. How does the capital gains tax rate vary by income level?
2. What is the tax difference between qualified dividends and non-qualified dividends?
3. How are ordinary dividends taxed compared to qualified dividends?
4. What are the different tax brackets for ordinary income?
5. How can holding periods affect long-term versus short-term capital gains?

Tip: Holding investments for longer than a year can qualify gains for lower long-term capital gains tax rates, making it a more tax-efficient strategy for many investors.