3. Paying taxes on stocks What does it mean to invest in stocks? Common stock is considered to be one of the most popular investment vehicles for long-term wealth building. Investors earn income from common stock in the form of dividends and/or capital gains. As an investor it is important to understand the implications of investing in stocks from a tax perspective. Calculating taxes owed on Hubert's investment Two years ago, Hubert purchased 100 shares a particular company's stock at a price of $87.32 per share. Last year, Hubert received an annual dividend of $1.50 per share, and at the end of the year, a share of stock was trading at $92.84 per share. This year, Hubert received an annual dividend of $1.65 per share and at the end of the year sold all 100 shares at a price of $103.05 per share. In the first column of the following table, enter the total annual dividends Hubert received each year, as well as the total capital gains at the end of each year. Suppose Hubert is in the 32% tax bracket. Compute the taxes Hubert pays each year on dividends and capital gains from this investment by completing the second column in the table. Note: Throughout this problem, please round your answers to the nearest cent. A-Z

What does it mean to invest in stocks? Commen stock is considered to be one of the most popular investment vehicles for long-term wealth bulding. Investers eam income from common stock in the form of dividends and/or capital gains. As an investor it is important to anderstand the implications of investing in stocks from a tax. perspective. Calculating taxes owed on Hubert's investment Two vears ago, Hubert purchased 100 shares of a particular cempany's stock at a price of $87,32 per share. Last veac, Hubert received an annual dividend of $1.50 per share, and at the end of the yeac, ashare of stock was trading at $92.84 per share. This yeac, Hubert received an annual dividend of $1.65 per share and at the end of the year sold all 100 shares at a price of $103.05 per share. In the first column of the following table, enter the total annusl dividends thubert nceeived each year, as well as the tetal capical gains at the end of each year: Suppose Hubert is in the 32% tax bracket. Compute the taxes Mubert pays each year on dividends and capital gains from this invesement by completing the second column in the table. Note: Throughout this problem, please round your answers to the nearest cent. In the first column of the following table, enter the total annual dividends Hubert recelved each vear, as well as the total capital gains at the end of each year. Suppose Hubert is in the 32% tax bracket. Compute the taxes Hubert pays each year on dividends and capital gains from this investment by completing the second columin in the table. Note: Throughout this problem, please round your answers to the nearest cent. The total amount of investment income (pre-taxes) that Hubert eamed on this investment over the course of 2 years is The total amount that Hubert pays in taxes on income from this investment income is