Question
On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $51 per share. On January 3, 2014, the investor sold the stock
On January 1, 2013, an investor bought 300 shares of Gottahavit, Inc., for $51 per share. On January 3, 2014, the investor sold the stock for $56 per share. The stock paid a quarterly dividend of $0.35 per share. How much (in $) did the investor earn on this investment and, assuming the investor is in the 33%tax bracket, how much will she pay in income taxes on this transaction? Assume a preferential tax rate of 15% on dividends and capital gains.
The amount (before taxes) the investor earned on this investment is $ ____ (Round to the nearest dollar.)
Assuming a preferential tax rate of 15%, the amount she will pay in income taxes on this transaction is $ _______.
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