Question

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $101,000 in salary. She received $12,000 of dividend income. She received $6,300 of interest income on Home Depot bonds. She received $22,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,600. She received $15,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,000. Mary only has allowable itemized deductions of $4,000, so she will take the standard deduction of $12,000 will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $   What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place.   % What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places.   %

Answer 1

Salary. Interest income on shapes. Income before deduction © Standabel deeluchies Income before dunidend & Lied, $103.000 $6300 $liona $118300 (2000) $106300 Federal taxe labilthy - Tax on income + taxon dinedent & Tax on tica Taux on income. $19802 ( As per 2013 Taux on diudend = $ 12000X15% = $18 . Tax on ca - $12400 x 15% $1860

Federal tax labelity = $19802 + $1800+ $1860 $23462 (B) Marginal tad sate His marginal tax rate is 24% (o Average tax rate 823462 xico $106310*12000 + $1240 $23462 4200 - 17.95% $130700