Interest in publicly-traded partnership

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Reference no: EM131045416

Tom pays 15% in dividends and capital gains taxes and 35% in ordinary income taxes. Three years ago, Tom purchased a 2% interest in a publicly -traded partnership. This year, the partnership had net income of $25 million and paid 20% in “qualifying dividends”. Tom’s taxes on this investment are

A: $ 15,000

B: $ 35,000

C: $ 75,000

D: $155,000

E: $175,000

Reference no: EM131045416

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