Sandra received $5,000 in interest income this year. She also sold 2,000 shares of stock at $12 per share; 2 years ago she had purchased these shares at $8 per share. Sandra pays a combined (Federal and Provincial) marginal tax rate of 40% on interest income and capital gains, and 30% tax on dividend income. What is Sandra’s total after-tax income from these investments?

Answer rating: 100% (QA)

To calculate Sandras aftertax income we need to first determine the amount of tax she will owe on ea... View the full answer