Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Xavier, filing single with taxable income of $ 3 8 , 3 5 0 , has a mutual fund investment account. The account earned $

Xavier, filing single with taxable income of $38,350, has a mutual fund investment account. The account earned $602 in qualified dividends for 2022. Xavier elected to reinvest these dividends. How will the dividends be taxed. A) Since Xavier reinv ested them, the divdends are not taxable for 2022. B) The dividends are taxable at his ordinary marginal rate of 12% C) The dividends are taxable for 2022, because of his taxable income they are taxed at 15% D) The dividends are taxable for 2022. Based on his income they fall in the 0% capital gain bracket

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions