tax name investment earnings tax rate
dividend income tax stock dividends if in bottom two tax brackets, not taxed if in top four brackets, taxed at 15%
interest income tax bond coupons taxed as ordinary income: 10% to 35% exception: municipal bond coupons are not taxed.
capital gains tax gain from sale of
stocks or bonds held for one year or less (short-term): taxed as ordinary income held for more than one year (long-term): taxed as dividend income

eric's income puts him in the second tax bracket (15%) last year. during the same year, he earned $515 in dividends and $65 in coupons on a municipal bond. in march, he purchased a common stock for $200. he sold the same stock six months later for $915. what is the total eric will pay in taxes on last year's investments?