Please Please help,

Donna works as a security analyst. Her salary for 2013 was $120,000. During 2012 she bought 1,500 shares of Sweetheart Software Inc. at $10.00 on which she received dividends of $0.44 per share in both 2012 and 2013. At the end of 2013, she sold the 1,500 shares at $11.50. Ignore CPP and EI premiums.

Required (Based on her total income for 2013):

What is Donnas marginal tax rate on her salary only?

What is Donnas marginal tax rate on her dividend income only?

What is Donnas marginal tax rate on her capital gain only?

How much total tax will Donna pay in 2013?

What is her 2013 average tax rate on her total income?

What is Donnas after-tax proceeds on the sale of the shares?

What is better for Donna, receiving $1,000 in Dividends or $1,000 in Capital Gains?

HINTS!!!!

Dutta's Example

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