Question

Excel Online Structured Activity: Personal taxes 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 $131,000 in salary. • She received $12.500 of dividend income. • She received $6.200 of interest income on Home Depot bonds. • She received $21.000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5.300. • She received $13,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of 54.900. Mary receives one exemption ($4.000), and she has allowable itemized deductions of $7.500. These amounts will be deducted from her gross income to determine taxable income. Assume that her tax rates are based on Table 3.3. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required answer the questions below. to X1 Open spreadsheet 3. What is Mary's Federal tax liability Round your answer to the nearest cont. Do not round Intermediate calculations b. What is her marginal tax rate? Round your answer to 1 decimal place c. What is her average tax rate? Round your answer to 2 decimal places.

Answer 1

$ 18,481.95 $ 6,930 1 $ 25,411.25 * Taxes on Dividends and love Terms Capital Gains. → Dividend Income = $13.000 → LT Capital Going Income (21,000 - 5,200) = $15.700 * Total Dividend and LT capital gains Income $ 12,500 $ 15,700 $ 28,200 & Tax on cs Gains Dividend and LT Capital Incom @ 15%. = $4,995 CS CamScanner

35,441.26 4,995 1 30,406 • 95 Calculation of moosgirol Tar sale roosginal Vol. Pale 98% © Da © Calculation of overge Tan sole Average loan Pute = $25.111.25 $ 131600 Avemp tax fale = 0.1930 A verye Tax fale = 19.30% Scanned with Scanner

Answer @ calculation of federal Tax Liability salary = $120,000 Interest Income = $ 4,000 * Short Term Capital Gains $ 13,000 - $4,900 $8100] Income Before Exemption & Deductions $ 131,000 4,000 ttes et 8100 $ 143,100 CS Scanned with CamScanner

* * y Pearsal cuerption $4800 @ Itomike nadeckiong $ 71500 Poloble Income Befosse Dividende anh long terms capital Gains 143,100 - 19000-7,500 * Tore on Socerse Beforse Dividendes Case Long Tiara Capital Gpins & Tan Liability on Bale of Bracket 1$ 19,481,35 * m liability on ga cell over bede $ 6,930 1131,661 90750) X 28% 40,880 X0.28 = 11,438 Scanned with CamScanner