Maximum tax rate on dividends and capital gains

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Reference no: EM131011550

In 2003, the maximum tax rate on dividends and capital gains is 15%. Andrew, who is in the 35% ordinary income tax bracket, purchased 100,000 shares of stock at $50 per share in January 2003. Dividends of $0.50 per share were paid in April and September. In October, Andrew sole 20,000 shares for $60. At the end of the year, the shares had a market value of $55 per share. The taxes on Andrew’s stock investment in 2003 are

A: $ 15,000

B: $ 45,000

C: $ 85,000

D: $145,000

E: $225,000

Reference no: EM131011550

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