est ibr ttps://www.mathxl.com/Student/PlayerTest.aspx?testld 189025200¢erwit
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est ibr ttps://www.mathxl.com/Student/PlayerTest.aspx?testld 189025200¢erwit Fall 2018 Hughes MWF 9am ibrahim abdullahi & 9/24/18 6:04 AM z: Chapter 14 Quiz Submit Quiz uestion: 1 pt This Quiz: 14 pts possible tal Gains Tax. Joel purchased 100 shares of stock for $37 per share. During the year, he received divndend c ring the year, he receved d dend checks amounting to S307 Joel recently sold the stock for S49 per share Joel is in a 35% tax backet He would pay held the stock for less than a year. How much would Joel save in taxes f he held the stock for more than a year, assur held the stock for more than a year, the amount Joel would save in taxes is (Round fo the nearest dollar) Enter your answer in the answer box 6:04 AM DOLLExplanation / Answer
Total Capital Gain = [$49 - $37] x 100 shares = $1,200
Taxes on ST Capital Gain = ST Capital Gain * Marginal Tax Rate
= $1,200 * 35% = $420
If the taxes paid is $820(which is not shown in the question), then
Savings = $820 - $420 = $400
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