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. 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 dividend in additional Benbow shares.