3. Paying taxes on stocks What It Means 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 the form dividends and/or capital gains. As an investor it important to understand the implications investing stocks from tax perspective. Two years ago, Albert purchased 100 shares of a particular company's stock at a price of $105.25 per share. Last year, Albert received an annual dividend of $1.45 per share, and at the end of the year, share of stock was trading at $110.84 per share. This year, Albert received an annual dividend of $1.60 per share and afterwa sold all 100 shares a price of $121.05 per share. In the first column of the following table, enter the total annual dividends Albert received each year, as well as the total capital gains at the end of each year. n the 28% tax bracket. Compute the taxes Albert pays each year on dividends and capital gains from this investment by completing Suppose Albert is the second column in the table. Calculating Taxes Owed on Albert's Investment Amount Taxes Owed Year 1 Dividends: Capital Gains: Year 2 Dividends: S S Capital Gains: The total amount investment income (pre taxes) that Albert earned on this investment over the course of 2 years is$ The total amount that Albert pays in taxes on income from this investment income is