Mr. Lay, who has a 39.6 percent marginal tax rate, earned a $22,030 dividend on his investment in Rexford Mutual
a. The entire $22,030 was an ordinary dividend.
b. $17,540 was an ordinary dividend and $4,490 was a capital gain distribution.
c. $6,920 was an ordinary dividend, $10,620 was a qualified dividend distribution, and $4,490 was a capital gain distribution.
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...
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Question Posted: November 03, 2015 05:41:14