A year ago, Frankie Figgs bought 10,000 shares of ABC Corporations stock for $35 per share. The firm recently paid a dividend of $0.20 per share and, in addition, the firm recently announced a stock repurchase program. After receiving the dividends on his 10,000 shares, Mr. Figgs sold 50 shares back to the company for $40 per share. Mr. Figgs is subject to a 15% personal tax rate on both dividends and capital gains. How much in personal taxes will Mr. Figgs pay on the dividends he received? How much in personal taxes will Mr. Figgs pay on the capital gain he realized from selling shares back to the company?

Dividend Tax = $300; Capital Gains Tax = $300

Dividend Tax = $100; Capital Gains Tax = $300

Dividend Tax = $300; Capital Gains Tax = $37.50

Dividend Tax = $100; Capital Gains Tax = $75.50