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Calculating taxes owed on Jake's investment Two years ago, Jake purchased 100 shares of a particular company's stock at a price of $77.14 per share.

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Calculating taxes owed on Jake's investment Two years ago, Jake purchased 100 shares of a particular company's stock at a price of $77.14 per share. Last year, Jake received an annual dividend of $1.35 per share, and at the end of the year, a share of stock was trading at $86.71 per share. This year, Jake received an annual dividend of $1.49 per share and at the end of the year sold all 100 shares at a price of $96.92 per share. In the first column of the following table, enter the total annual dividends Jake received each year, as well as the total capital gains at the end of each year. Suppose Jake is in the 32% tax bracket. Compute the taxes Jake 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. Amount Taxes Owed S Year 1 $47.25 $0.00 S Dividends: Capital Gains: Dividends: Capital Gains: S Year 2 $52.15 $296.70 $ $2,127.00 The total amount of investment income (pre-taxes) that Jake earned on this investment over the course of 2 years is $348.85 The total amount that Jake pays in taxes on income from this investment income is Grade It Now Save & Continue Continue without saving MacBook Pro

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