You purchase a stock for $20. At the end of one year, the stock pays a cash dividend of $3. After receiving the dividend, you sell the stock for $25. On which of the oollowing gains do you owe taxes? Only the $3 dividend Both the $5 capital gain and the $3 dividend Only the $5 capital gain Neither the $5 capital gain nor the $3 dividend.

1. You purchase a stock for $20. At the end of one year, the stock pays a cash dividend of $3. After
receiving the dividend, you sell the stock for $25. On which of the oollowing gains do you owe
taxes? Only the $3 dividend Both the $5 capital gain and the $3 dividend Only the $5 capital
gain Neither the $5 capital gain nor the $3 dividend