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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.
- 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.
- 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.
- 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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