Ms S, who has a 33 percent marginal tax rate, owns Benbow Inc preferred stock in her investment portfolio Her Form 1099 reported that she earned $19,580 dividend income on her Benbow investment Compute her income tax on this dividend assuming that a On the basis of Ms Ss instruction, Benbow made a ...

a Ms Ss income tax is 2937 19580 15 preferentia ...

Ms. S, who has a 33 percent marginal tax rate, owns Benbow Inc. preferred stock in her

Question:

Ms. S, who has a 33 percent marginal tax rate, owns Benbow Inc. preferred stock in her investment portfolio. Her Form 1099 reported that she earned $19,580 income on her Benbow investment. Compute her income tax on this assuming that:
a. On the basis of Ms. S’s instruction, Benbow made a $19,580 direct deposit into Ms. S’s bank account.
b. On the basis of Ms. S’s instruction, Benbow reinvested the in additional Benbow shares.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...