14. Use the table to answer the question that follows. Tax Name Investment Earnings Tax Rate
Dividend Income Tax Stock dividends If in bottom 2 tax brackets, not taxed If in top 4 brackets, taxed at 15%
Interest Income Tax Bond coupons Taxed as ordinary income: 10% to 35% Exception: Municipal bond coupons are not taxed.
Gain from sale of
Capital Gains Tax
Held for 1 year or less (short-term): taxed as ordinary income Held for more than 1 year (long-term): taxed as dividend income
stocks or bonds
Louise's income put her in the fourth tax bracket (28%) last year. During that year, she earned $200 in dividends and $275 in coupons on a municipal bond. Five years ago, she purchased a
common stock for $400. She sold the same stock last year for $514. What is the total Louise will pay in taxes on last year's investments? (2 points)
$124.10
O $61.92
O $47.10
O $17.10