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You own 1000 shares of Mountain Oil that owns oil and gas assets

Accounting

You own 1000 shares of Mountain Oil that owns oil and gas assets. The corporation earns $5 per share before taxes. Once it has paid taxes, it will distribute its earnings to you as a dividend. You have also made capital gains of $5000 this year on your shares held. The corporate tax rate is 48%, the effective personal dividend tax rate is 30% and the personal tax rate on income is 42%. How much do you own in taxes for both capital gains and dividend income?

 

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