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10. The shares of Volkswagen trade on the Frankfurt stock exchange. A U.S. investor purchased 1,000 shares of Volkswagen at 56.91 each, when the exchange
10. The shares of Volkswagen trade on the Frankfurt stock exchange. A U.S. investor purchased 1,000 shares of Volkswagen at 56.91 each, when the exchange rate was :$= 0.97900.9795. Three months later, the investor received a dividend of 0.50 per share, and the investor decided to sell the shares at the then prevailing price of 61.10 per share. The exchange rate was :$=0.98100.9815. The dividend withholding tax rate in Germany is 15% and there is a tax treaty between the United States and Germany to avoid double taxation. a. How much did the U.S. investor receive in dividends in dollars, net of tax? b. What were the capital gains from the purchase and sale of Volkswagen shares? c. How would the dividend income be declared by the investor on a U.S. tax return, and what tax credit would he receive
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