What does it mean 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 Clancy's investment Two years ago, Clancy purchased 100 shares of a particular company's stock at a price of $77.14 per share. Last year, Clancy received an annual dividend of $1.35 per share, and at the end of the year, a sharehof stock was trading at $86.71 per share. This year, Clancy 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 Clancy received each year, as well as the total capital gains at the end of each year. Suppose Clancy is in the 32% tax bracket. Compute the taxes Clancy pays each year on 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. Two years ago, Clancy purchased 100 shares of a particular company's stock at a price of $77.14 per share. Last year, Clancy 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 Clancy received each year, as well as the total capital gains at the end each year. Suppose Clancy is in the 32% tax bracket. Compute the taxes Clancy.pays each year on 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. The total amount of investment income (pre-taxes) that Clancy earned on this investment over course of 2 years is The total amount that Clancy pays in taxes on income from this investment income is