Question

Joel purchased 100 shares of stock for ​$11 per share. During the​ year, he received dividend checks amounting to ​$71. Joel recently sold the stock for ​$15 per share. Joel is in a 33​% tax bracket. What amount of taxes will he pay on his capital gain if he held the stock for less than a​ year?

Answer 1

$155.43

Step-by-step explanation:

Joel purchased 100 stocks at $11 per stock = $1,100

He received $71 in dividends ($0.71 per stock)

He sold the 100 stocks at $15 per stock = $1,500

If Joel's investment lasted less that 1 year, he will pay any capital gains as regular income taxes for $71 + $400 (=$1,500 - $1,100) = $471

$471 x 33% = $155.43