to invest in stocks? Common stock is considered to be one of the most popular investment vehicles for long-term wealth building. Investors earn income from common stock in the form of dividends and/or capital gains. As an investor it is important to understand the implications of investing in stocks from a tax perspective. Calculating taxes owed on Darnell's investment Two years ago, Damell purchased 100 shares of a particular company's stock at a price of $77.14 per share. Last year, Darnell received an annual dividend of $1.35 per share, and at the end of the year, a share of stock was trading at $56.71 per share. This year, Darnell received an annual dividend of $1.49 per share and at the end of the year sold all 100 shares at a price of $96.92 per share. In the first column of the following table, enter the total annual dividends Darnell received each year, as well as the total capital gains at the end of each year Suppose Darnell is in the 32% tax bracket. Compute the taxes Darnell pays each year en dividends and capital gains from this investment by completing the second column in the table. Note: Throughout this problem, please round your answers to the nearest cent. Year 1 Year 2 Dividends: Capital Gains: Dividends: Capital Gains Amount $42.00 $142.50 $285.00 $44.00 x x X Taxes Owed $28.00 $28.00 $8.00 $28.00 X X X x 10/1