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Business, 22.06.2020 20:57 ThunderThighsM8

1. Use the table to answer the question that follows. Tax Name Investment Earnings Tax Rate
Dividend Income Tax Stock dividends If in botton two tax brackets, not taxed If in top four brackets, taxed at 15%
Interest Income Tax Bond coupons Taxed as ordinary incore: 10% to 35% Exception: Municipal bond coupons are not taxed.
Gain from sale of
Capital Gains Tax
Held for one year or less (short-term): taxed as ordinary income Held for more than one year (long-term): taxed as dividend income
stocks or bonds
Eric's income puts him in the second tax bracket (15%) last year. During the same year, he earned $S15 in dividends and $65 in coupons on a municipal bond. In March, he purchased a common stock for $20
months later for $915. What is the total Eric will pay in taxes on last year's investments? (3 points)
O $117.00
O $107.25
ооо
O $184.50
0 $0.00

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