: Donna works in BC as a security analyst. Her salary for 2017 was $130,000. In

Question

: Donna works in BC as a security analyst. Her salary for 2017 was $130,000. In 2014, she bought 1500 shares of a large public company at $10/share on which she received dividends of $0.44 per share. At the end of 2017, she sold the 1500 shares at $11.50. A) How much tax will Donna pay in 2017? B) what is Donna's after-tax proceeds on the sale of the shares? C) What is the after-tax rate of return on the company investment? (annualized) Combined Federal&British; Col 2017 Taxable Income 2017 Marginal Tax Rates Other Capital Canadian Income GainsDividends Non- Eligible Eligible first $38,898|20.06%)10.03% -6.84%) over $38,898 up to $45,916 over $45,916 up to $77707 128.2090|14.10% over $77,797 up to $89,320 over $89,320 up to $91,831 over $91,831 up to $108,460 over $108,460 up to $142,353 over $142,353 up to $202,800 over $202.800|47.70%|23.85%) 31.30% 8.27% 22.70% 11.35% -3.20%) 11.36% 31.00% 15.50%) 8.25% 32.79% 16.40%) 10.72% 38.29%)19.15%) 18.31% 0.70%20.35% 21.64% 3.70%)21.85%) 25.78% 21.07% 23.16% 29.60% 32.42% 35.93% 40.61%

Explanation / Answer

Salary Income 130000 Tax on Above Income Tax 0 to 38898 7802.939 38898 38898 to 45916 (45916-38898)*22.70% 1593.086 12018 over 45916 to 77797 (77797-45916)*28.20% 8990.442 31881 over 77797 to 89320 (89320- 77797)*31% 3572.13 11523 over 89320 to 91831 (91831-89320)*32.79% 823.3569 2511 over 91831 to 108460 (108460-91831)*38.29% 6367.244 16629 over 108460 to 142353 (130000-91831)*40.70% 8766.78 21540 Total 37915.98 135000 Capital Gain (11.40-10)*1500 2100 210.63 Dividend (0.44*1500) 660 -45.144 Total Tax to be paid in 2017 38081.46

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