What is the investor second year tax obligation

Assignment Help Finance Basics
Reference no: EM132466014

An investor bought 100 shares of a REIT for $54 a share and two years later sold the shares for $62. The REIT annually distributed $4.00 per share ($400) consisting of $2.00 return of capital $200), $1.20 ($120) in income and $0.80 ($80) in long-term capital gains. The investor's income tax bracket is 30%. The long-term capital gains tax rate is 15 percent. What is the investor's second year's tax obligation?

Reference no: EM132466014

Questions Cloud

Current income tax payable to the government plus : When income tax expense equals current income tax payable to the government plus (minus) the increase (decrease) in deferred tax liabilities,
Calculate the contribution to profit from the special order : Calculate the contribution to profit from the special order. Should Gibson accept or reject the special order to pour 49 slabs for $2,630 each?
Why is it important to reduce the total number of key factor : What procedures then could be used to determine the most important of these? Why is it important to reduce the total number of key factors?
Identify the avoidable costs : Identify the avoidable costs and determine the amount of avoidable cost for each product.Identify the fixed costs and determine the amount of fixed cost
What is the investor second year tax obligation : The long-term capital gains tax rate is 15 percent. What is the investor's second year's tax obligation?
Discussing book value of common stock : In discussing book value of common stock, which statement below is not correct? Book value is also referred to as total equity of the firm.
Maintain the same purchasing power as in 1945 : If you were worth $1 Million at the end of World War II, calculate how much you would need today to maintain the same purchasing power as in 1945?
How many units of the part are held in pipeline inventory : A part is produced in lots of 1,000 units. How many units of the part are held, on average, in pipeline inventory? What is the dollar value of this inventory
What is the math behind taking a five year return : What is the math behind taking a five year return and annualizing it? For example, 45.15% five year return is 7.74% annually.

Reviews

Write a Review

Finance Basics Questions & Answers

  Bank account-interest rate

How much is left in the bank account in 6 years if the interest rate is 5% pa. compounding semi-annually? (Correct to the nearest cent.)

  What is the value of the firm

Morning foods has expected earnings before interest and taxes of $48,000, an unlevered cost of capital of 13.2 percent, and debt with both a book and face value of $25,000. The debt has an 8.5 percent coupon. The tax rate is 34 percent. What is th..

  Construct an arbitrage from given situation

A European call with a maturity of 6 months and exercise price X = 80 is written on a stock whose current price is 85 is selling for $12.00.

  Define essential conditions for stress corrosion cracking

Name at least three ways to reduce the possibility of hydrogen embrittlement ? What are the essential conditions for stress corrosion cracking (SCC)?

  Douglass inc has sales of 132000 costs of 103000

douglass inc. has sales of 132000 costs of 103000 depreciation expense of 11000 and interest paid of 4100. the tax rate

  Individual term life insurance policy

The house has a market value of $300,000, and the mortgage is $250,000. Jack has $100,000 of group term life insurance and an individual term life insurance.

  Two ipos will commence trading next week scott places an

two ipos will commence trading next week. scott places an order to buy 300 shares of ipo a. steve places an order to

  What is the ear for a one-year loan with a quoted

What is the EAR for a one-year loan with a quoted interest rate of 10.7 percent plus two points?

  Explain basic earnings and diluted earnings per share

Explain basic earnings per share, diluted earnings per share, potential ordinary shares and limitation of EPS as a performance measure.

  What circumstances should photosynthesis take on the project

Under what circumstances should Photosynthesis take on the project?

  Discuss the major components of the sarbanes-oxley act

Discuss the major components of the Sarbanes-Oxley Act of 2002 and Corporate Governance?

  Number of alcoholic beverages

Conduct a regression analysis to determine if age (independent variable) has any effect on the number of alcoholic beverages someone consumes in one month. State what you are testing and what the x (independent) and y (dependent) variables are. Te..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd