capital gains, and $1,592 in short term capital gains. What are Joey's taxes on this investment?
capital gains, and $1,592 in short term capital gains. What are Joey's taxes on this investment?
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 3BCRQ
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D3)
Transcribed Image Text:Joey pays 15% in dividends and capital gain taxes and 40% in ordinary income taxes.
In January, she purchased 600 shares of a no-load mutual fund for $29.61 a share
with the provision that all distributions are reinvested. In October, she sold 300
shares for $59.32. At the end of the year, she received a statement stating the fund
had distributions to her of $228 in qualified dividend income, $1,393 in long-term
capital gains, and $1,592 in short term capital gains. What are Joey's taxes on this
investment?
Round the answer to two decimals
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