chapter 19 problem 22 Marcus purchased 500 shares worth $10,000 of Design Co., a well-established company that provides outsourcing for technical research. On January 8, 2015, Design Co. declared a $2.50 dividend per share. The ex-dividend date is January 23, and the dividends are to be paid on March 16 2015. On January 20, 2015 je sold 100 shares of the company for $40 per share. Marcus's personal tax rate is 35 percent (federal and provincial tax combined). a) Given that capital gains are taxed at 50 percent, how much tax will Marcus pay for the sale of the shares? b) Assuming dividends are grossed up at 38 percent and the total dividend tax is equal to 20 percent of the grossed-up dividends, how much tax will Marcus pay on cash dividends received from Design Co.? c) What is his total tax obligation? Would your answer to part (b) be different if stock dividend were paid instead of a cash dividend?