Calculating taxes owed on Erics investment

Two years ago, Eric purchased 100 shares of a particular companys stock at a price of $136.55 per share. Last year, Eric received an annual dividend of $1.75 per share, and at the end of the year, a share of stock was trading at $140.76 per share. This year, Eric received an annual dividend of $1.93 per share and at the end of the year sold all 100 shares at a price of $150.97 per share.

In the first column of the following table, enter the total annual dividends Eric received each year, as well as the total capital gains at the end of each year.

Suppose Eric is in the 22% tax bracket.

Compute the taxes Eric pays each year on dividends and capital gains from this investment by completing the calculations

Note: Throughout this problem, please round your answers to the nearest cent.

Calculate the amount and taxes owed on the year 1 and year 2 dividends and capital gains

Amount Taxes owed

Dividends:

Capital Gains:

Year two

Amount Taxes owed

Dividends:

Capital Gains:

Calculate

The total amount of investment income (pre-taxes) that Eric earned on this investment over the course of 2 years is

calculate

The total amount that Eric pays in taxes on income from this investment income is