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Hayley recently invested $34,000 in a public utility stock paying a 8 percent annual dividend. (Hayley's marginal income tax rate is 32 percent.) Use Tax

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Hayley recently invested $34,000 in a public utility stock paying a 8 percent annual dividend. (Hayley's marginal income tax rate is 32 percent.) Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference. Required: a. If Hayley reinvests the annual dividend she receives net of any taxes owed on the dividend, how much will her investment be worth in eight years if the dividends paid are qualified dividends? b. What will her investment be worth in eight years if the dividends are nonqualified? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Investment worth when dividends are qualified b. Investment worth when dividends are nonqualified 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: S 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $9,950 $ 40,525 $ 86,375 54,664 plus 22% of the excess over $40,525 $ 86,375 $164.925 $14.751 plus 24% of the excess over $86,375 S 164.925 S 209.425 $33,603 plus 32% of the excess over $164.925 $ 209,425 S 523,600 47,843 plus 35% of the excess over $209,425 S 523,600 $157,804.25 plus 37% of the excess over $523.600 0 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: s $ 19,900 10% of taxable income S 19.900 S 81,050 51.990 plus 12% of the excess over $19.900 $ 81,050 S 172,750 59,328 plus 22% of the excess over $81,050 S 172.750 S 329,850 529,502 plus 24% of the excess over S172.750 S 329,850 S418,850 567,206 plus 32% of the excess over $329,850 5418,850 S 628,300 595,686 plus 35% of the excess over 5418,850 S 628,300 $168.993.50 plus 37% of the creess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: S 0 S 14,200 10% of taxable income S 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 $6,220 plus 22% of the excess over $84.200 $ 86,350 $164.900 $13,293 plus 24% of the excess over $86,350 S 164,900 $ 209,400 532.145 plus 32% of the excess over $164,900 $ 209,400 S 523.600 $46,385 plus 35% of the excess over $209,400 $ 523,600 S156,355 plus 37% of the excess over S523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: s 0 $ 9,950 10% of taxable income $9.950 S 40.525 5995 plus 12% of the excess over $9.950 $ 40.525 S 86,375 54.664 plus 22% of the excess over S40.525 $ 86,375 S 164,925 $14,751 plus 24% of the excess over $86,375 S 164,925 $ 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47,843 plus 35% of the excess over $209,425 S 314,150 S84,496.75 plus 37% of the excess over $314,150 0% Tax Rates for Net Capital Gains and Qualified Dividends Taxable income Rate* Married Filing Jointly Married Filing Separately Single Head of Household Trusts and Estates SO - $80.800 SO - $40,400 SO - $40,400 S0 - $54,100 $0-$2,700 15% 580,801 - 5501,600 $40,401 - $250.800 S40,401 - 5445,850 $54,101 - 5473,750 $2,701 - 513,250 20% $501.601+ S250,801 $445.851 S473.751+ $13,251 *This rare applies to the net capital gains and qualified dividends thar fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income lust for this purpose)

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