Hannah,who Is Single,received a Qualified Dividend of $1,000

question 108

Short Answer

Hannah,who is single,received a qualified dividend of $1,000.Hannah's marginal ordinary income tax rate is 28%.What amount of tax must she pay on the $1,000 dividend?

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Definitions:

Annual Rate

The interest rate for a period of one year, not accounting for compounding within that year.

Promissory Note

A financial paper embodying a vow by one individual or entity to transfer a stated sum of money to another, either on demand or on a specified forthcoming date.

Simple Interest

Interest calculated on the principal amount of a loan or investment, without compounding over time.

Yield

The income return on an investment, typically expressed as an annual percentage rate based on the investment’s cost, its current market value, or its face value.