Aidan is paying his taxes and realizes that he was in the first tax bracket (10%) last year. Eleven years ago, he bought a commo
n stock for $705. The same stock was sold last year for $947. During the same year, he earned $565 in dividends and $780 in coupons on a corporate bond. What will Aidan pay in taxes for last year’s investments? $78.00
So let us analyze the given table above. In the first tax bracket, he doesn't have to pay tax on the dividends. The $565 he earned in dividends is not taxable as well. Also the common stock he bought for $705 since this is a long term evidence. So the only taxable would be <span>$780 in coupons on a corporate bond. So multiply this by 10% and you get $78. Therefore, the answer would be the first option. Hope this helps.</span>
