Ch 12: Assignment Investing in Stocks and Bonds Attempts 1.5 Keep the Highest 15/3 4. Paying taxes on stocks What It Means to invest in Stocks? Common stock is considered to be one of the most popular investment vehides 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 stods from a tax perspective Two years 190, 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, a share of stock was trading at $110.84 per share. This year, Albert received an annual dividend of $1.60 per share and afterward sold all 100 shares at 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 Suppose Albert is in the 28% tax bracket. Compute the taxes Albert pays each year on dividends and capital gains from this investment by completing the second column in the table. Calculating Taxes Owed on Albert's Investment Amount Taxes Owed Yeart Dividends: Capital Gains: Dividends: Capital Gains: Year 2 5 5 5 5 The total amount of investment income (pre aces) that Albert eamed on this investment over the course of 2 years is The total amount that Albert Days in taxes on income from this investment income is s Grade It Now Save & Continue Continue without saving