William Is Single and Had Salary Income from His Position

Multiple Choice

William is single and had salary income from his position as Chief Financial Officer of Zippy Bank of $450,000 (the 39.6 tax bracket) .He also had $35,000 in income from the dividends on the stock of his previous employer.How will William's taxable income of $475,000 (after his standard deduction and personal exemption) be taxed?

A) All $475,000 will be taxed at 39.6%
B) All $475,000 will be taxed at 43.4% due to the surtax
C) Only the $450,000 income from his salary will be taxed at 39.6%
D) His salary income will be taxed at 39.6% and his dividend income at 23.8%