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 Paolo's investment Two years ago, Paolo purchased 100 shares of a particular company's stock at a price of $114,44 per share. Last yeac, Paolo received an annual dividend of $1.95 per share, and at the end of the year, a share of stock was trading at $120.83 per share. This year, Paolo received an annual dividend of $2.15 per share and at the end of the year sold all 100 shares at a price of $131.04 per share. In the first column of the following table, enter the total annual dividends Paolo received each year, as well as the cotal capital gains at the end of each year. Suppose Paolo is in the 22% tax bracket. Compute the taxes Paolo pays each year on dividends and capital gains from this investment or completing the second columin in the table. Note: Throughout this problem, please round your answers to the nearest cent. The total amount of investment income (pre-taxes) that Paolo eamed on this investment over the course of 2 years is The total amount that Paolo pays in taxes on income from this investment income is