3/7? I’m not positive on this, it’s very straightforward but i mean 6/7 - 3/7 = 3/7 so i’m going with that
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>
Formulas:
A= (b1+b2) /2 X h
A= (22.2+8.52) x 9.86
A=30.72x9.86
A= 302.90
