What is the amount of tax paid by the investor

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An investor buys 100 shares of AT&T for $32/share. If 20 shares are sold after 6 months for $35 share and the remaining shares are sold after one year at $40, what is the amount of tax paid by the investor? Assume she pays $19 to her broker every time she makes a transaction. Tax rates: Federal ordinary income = 35%; long-term capital gains = 15%; state taxes = 7% on ordinary income and 2% on long-term capital gains.

Reference no: EM132622578

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