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a) You bought 300 Royal Bank common shares at $95.40 and sell them at $97.20. Your federal marginal tax rate was 26% and average tax rate was 20%. Calculate the income taxes payable. Select one: Oa. $70.20 Ob. $140.40 $54.00 O d. $108.00

a) You bought 300 Royal Bank common shares at $95.40 and sell them at $97.20. Your federal marginal tax rate was 26% and average tax rate was 20%. Calculate the income taxes payable. Select one: Oa. $70.20 Ob. $140.40 $54.00 O d. $108.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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please get the correct answer for the questions a) and b)

a) You bought 300 Royal Bank common shares at $95.40 and sell them at $97.20. Your federal marginal tax rate was 26% and average tax rate was 20%. Calculate the income taxes payable. Select one: O a. $70.20 O b. $140.40 O c. $54.00 O d. $108.00 b) You are preparing your annual income tax return. Your earnings for the year was $80,000. How much federal income taxes will you owe based on the following federal tax rates: $0 to $45,000 of taxable income (15%) and $45,001 to $91,000 of taxable income (20.5%)? Select one: O a. • $14,341 O b. $14,318 O c. $13,925 O d. $13,849 O e. $14,368
Transcribed Image Text:a) You bought 300 Royal Bank common shares at $95.40 and sell them at $97.20. Your federal marginal tax rate was 26% and average tax rate was 20%. Calculate the income taxes payable. Select one: O a. $70.20 O b. $140.40 O c. $54.00 O d. $108.00 b) You are preparing your annual income tax return. Your earnings for the year was $80,000. How much federal income taxes will you owe based on the following federal tax rates: $0 to $45,000 of taxable income (15%) and $45,001 to $91,000 of taxable income (20.5%)? Select one: O a. • $14,341 O b. $14,318 O c. $13,925 O d. $13,849 O e. $14,368
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