Karen, a resident of Nova Scotia, has $10,000 to invest for one year. She has found two alternatives: a bond that will provide interest income at year-end of $400, and a common stock whose price is $50 and is expected to increase by $2.00. Ignoring risk and other factors, how much money will Karen have after taxes from each investment? Use Tables 2-8 and 2-9, and assume that Karen has taxable income of $65,000.

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TABLE 2-8 2014 Federal Personal Tax Rates Tax Brackets Tax Rates On the first $43,953 15% 22 43,954-87,907 26 87,908–136,270 Over 136,270 29 TABLE 2-9 2014 Provincial Personal Tax Ratesº,c Tax Rates Tax Brackets ($) Tax Rates Tax Brackets ($) British Columbia Alberta On the first 37,606 On the next 37,607 On the next 11,141 On the next 18,504 On the next 45,142 Over 150,000 5.06% 10% All income 7.7 10.5 12.29 14.7 16.8 Saskatchewan Manitoba On the first 31,000 On the next 36,000 11% On the first 43,292 10.8% On the next 80,400 Over 123,692 13 12.75 15 17.4 Over 67,000 Québec 16% Ontario On the first 40,120 On the next 40,122 On the next 433,848 On the first 41,495 On the next 41,490 On the next 17,985 Over 100,970 5.05% 9.15 20 11.16 24 13.16 Over 514,090 25.75 New Brunswick 9.68% Nova Scotia 8.79% On the first 39,305 On the next 39,304 On the next 49,193 On the first 29,590 On the next 29,590 On the next 33,820 On the next 57,000 Over 150,000 14.82 14.95 16.52 16.67 17.84 Over 127,802 17.5 21 Prince Edward Island Newfoundland and Labrador On the first 31,984 On the next 31,985 Over 63,969 On the first 34,254 On the next 34,254 Over 68,508 9.8% 7.7% 13.8 12.5 16.7 13.3