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Mr. Lay, who has a 37.0 percent marginal tax rate on ordinary income, earned a $22,130 dividend on his investment in Rexford Mutual Fund. Use

Mr. Lay, who has a 37.0 percent marginal tax rate on ordinary income, earned a $22,130 dividend on his investment in Rexford Mutual Fund. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.

  1. Compute the income tax and the Medicare contribution tax on this dividend if his Form 1099 reported that the entire $22,130 was an ordinary dividend.
  2. Compute the income tax and the Medicare contribution tax on this dividend if his Form 1099 reported that $17,630 was an ordinary dividend and $4,500 was a capital gain distribution.
  3. Compute the income tax and the Medicare contribution tax on this dividend if his Form 1099 reported that $7,070 was an ordinary dividend, $10,720 was a qualified dividend distribution, and $4,340 was a capital gain distribution.

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