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. What tax rate will apply to William's dividend income?

A) 15%
B) 20%
C) 35%
D) 39.6%