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Hayley recently invested $35,000 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 $35,000 in a public utility stock paying a 8 percent annual dividend. (Hayley's marginal income tax rate is 32 percent) Use Tax Rate Sphedule, Dividends and Capital Galns 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 pald 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 Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $9,950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $ 164,925 $14,751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33,603 plus 32% of the excess over $164,925 $ 209,425 $ 523,600 $47,843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19.900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 $ 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168,993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 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 $54,200 $ 86,350 $ 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32,145 plus 32% of the excess over $164,900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 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 00 50 - $80.00 50 - 540400 50 $40 A00 SO - $54.100 $0-$2,700 156 SSO SOL-S501.600 $40.401 $250.800 $40 401 - 5445.850 S54,101 - 5473,750 52.701 - 513,250 20 550101 5250.801- $445.RSI S473.751 $13.251 "This role applies to the mi capital gains and qualified dividends that foll within the range of taxable income specified in the table (nel capital gains and qualified dividends are included in luable income out for this purpose)

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