first problem done like this

CHAPT Hayley recently invested $50,000 in a public utility stock paying a 3 percent annual dividend. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in four years if the dividends paid are qualified dividends? (Hayley's marginal income tax rate is 32 percent.) What will her investment be worth in four years if the dividends are nonqualified? D. Five years ago, Kate purchased a dividend-paying stock for $10,000. For all five years, the stock paid an annual dividend of 4 percent before tax and Kate's marginal tax rate was 24 percent. Every year Kate reinvested her after-tax dividends in the same stock. For the first two years of her investment, the dividends qualified for the 15 percent capital gains rate; however, for the last three years the 15 percent dividend rate was repealed and dividends were taxed at ordinary rates. a) What is the current value (at the beginning of year 6) of Kate's investment assuming the stock has not appreciated in value? b) What will Kate's investment be worth three years from now (at the beginning of year 9) assuming her marginal tax rate increases to 35 percent for the next three years? 1. John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction a) What is John's adjusted basis in the 1,000 shares of Intel stock? b) What amount does John realize when he sells the 1,000 shares? c) What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss? 2. Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis 7/10/2009 4/20/2010 400 300 $12,000 10,750 12,230 1/29/2011 500 11/02/2013 250 7,300 If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2019, what is her capital gain or loss in each of the following assumptions? 1bo CICO mothd 39: e first part, set it up like this: Investment at Tax Owed on Increase in Investment at End Period Start of Period Dividend Dividend investment of Period Tax Owed on Increase in Investment at End Investment at of Period Investment Start of Period Dividend Dividend Period For the rate of return: Non-Qualified Qualified Pre-tax Rate Tax rate After-tax Rate The pre-tax rate is the 3% CHAPT Hayley recently invested $50,000 in a public utility stock paying a 3 percent annual dividend. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in four years if the dividends paid are qualified dividends? (Hayley's marginal income tax rate is 32 percent.) What will her investment be worth in four years if the dividends are nonqualified? D. Five years ago, Kate purchased a dividend-paying stock for $10,000. For all five years, the stock paid an annual dividend of 4 percent before tax and Kate's marginal tax rate was 24 percent. Every year Kate reinvested her after-tax dividends in the same stock. For the first two years of her investment, the dividends qualified for the 15 percent capital gains rate; however, for the last three years the 15 percent dividend rate was repealed and dividends were taxed at ordinary rates. a) What is the current value (at the beginning of year 6) of Kate's investment assuming the stock has not appreciated in value? b) What will Kate's investment be worth three years from now (at the beginning of year 9) assuming her marginal tax rate increases to 35 percent for the next three years? 1. John bought 1,000 shares of Intel stock on October 18, 2015, for $30 per share plus a $750 commission he paid to his broker. On December 12, 2019, he sells the shares for $42.50 per share. He also incurs a $1,000 fee for this transaction a) What is John's adjusted basis in the 1,000 shares of Intel stock? b) What amount does John realize when he sells the 1,000 shares? c) What is the gain/loss for John on the sale of his Intel stock? What is the character of the gain/loss? 2. Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft common stock over the years: Date Purchased Shares Basis 7/10/2009 4/20/2010 400 300 $12,000 10,750 12,230 1/29/2011 500 11/02/2013 250 7,300 If Dahlia sells 800 shares of Microsoft for $40,000 on December 20, 2019, what is her capital gain or loss in each of the following assumptions? 1bo CICO mothd 39: e first part, set it up like this: Investment at Tax Owed on Increase in Investment at End Period Start of Period Dividend Dividend investment of Period Tax Owed on Increase in Investment at End Investment at of Period Investment Start of Period Dividend Dividend Period For the rate of return: Non-Qualified Qualified Pre-tax Rate Tax rate After-tax Rate The pre-tax rate is the 3%