# Question 4 - Chapter 16 Homework - Connect pt 2

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eBook References 4 0/1 points awarded Scored Show my answers Explanation a. Ms. Shaver's income tax is \$2,952 (\$19,680 × 15% preferential rate on qualified dividend income). b. The income tax is \$2,952. Ms. Shaver is in constructive receipt of the dividend income even though it was automatically reinvested in additional Benbow shares. Chapter 16 Homework 1.5/10 Total points awarded Help Exit Submitted Ms. Shaver, a single taxpayer, has \$214,000 taxable income, which includes a \$19,680 qualified dividend from Benbow, Incorporated. Use Tax rates for capital gains and qualified dividends . Required: a. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver's instruction, Benbow made a \$19,680 direct deposit into her bank account. b. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver's instruction, Benbow reinvested the dividend in additional Benbow shares. Required A Required B Complete this question by entering your answers in the tabs below. Compute her income tax on this dividend assuming that on the basis of Ms. Shaver's instruction, Benbow reinvested the dividend in additional Benbow shares. Required A Required B \$ Income tax on dividends 2,952 Prev of 10 Next 4