
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Sam Scurry bought several hundred shares of annable.com at a price of $41.40 about 5 years ago
that sold for $64.20 per share today. Sam pays capital gains tax at the rate of 19% and pays tax
on dividends at the rate of 27%. Suppose that annable.com elects not to pay a dividend this year
and that Sam sells 19 shares of stock.
How much of the total amount of proceeds from the sale will Sam get to keep?
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