Solution: | ||
Taxable income of Mary Jarvis | ||
Salary | $88,000 | |
Dividend income | $11,000 | |
Interest Income | $6,900 | |
Gain from Disney stock ($23,000 - $6,000) | $17,000 | |
Gain from sale of Google stock ($10,500 - $5,200) | $5,300 | |
Less: exemptions and allowable deductions | ||
Exemptions | ($4,050) | |
Itemized deductions | ($7,500) | |
Total Taxable income | $116,650 | |
a. | Federal tax liability | |
= | $18,481.25 + ($116,650 - $90,750) * 28% | |
= | $25,733.25 | |
b. | Mary is single taxpayer covered under tax bracket | |
$18,481.25 + ($90,750 - $189,750 )* 28% | ||
So marginal tax rate is 28% | ||
c. | Average Tax rate | |
= | $25,733.25/$116,650 *100 | |
= | 22.06% | |
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Mary Jarvis is a single individual who is working on filing her tax return for the...
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 $78,000 in salary. She received $14,500 of dividend income. She received $4,200 of interest income on Home Depot bonds. She received $25,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,300. She received $11,500 from the sale of Google stock that was...
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...
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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 $115,000 in salary. She received $14,500 of dividend income. She received $5,800 of interest income on Home Depot bonds. She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,400. She received $10,500 from the sale of Google stock that was...
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 $90,000 in salary. • She received $11,000 of dividend income. She received $6,200 of interest income on Home Depot bonds. She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,300. She received $10,500 from the sale of Google stock that...
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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 $18,000 of dividend income. -She received $6,100 of interest income on Home Depot bonds. -She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,000. -She received $10,500 from the sale of Google stock that was...
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 $125,000 in salary. She received $15,500 of dividend income. She received $8,300 of interest income on Home Depot bonds. She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,500. She received $9,500 from the sale of Google stock that was...
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 $91,000 in salary. She received $18,500 of dividend income. She received $5,800 of interest income on Home Depot bonds. She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,700. She received $12,500 from the sale of Google stock that was...
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 $125,000 in salary. She received $12,500 of dividend income. She received $7,200 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 $5,200. She received $15,000 from the sale of Google stock that was...