Question

. She received $139,000 in salary • She received $14,000 of dividend income. • She received $3,500 of interest income on Home Depot bonds. She received $21,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,900 • She received $12,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,600. • 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 her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Х Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ 162,000.00 b. What is her marginal tax rate? Round your answer to 1 decimal place. 32.00 % c. What is her average tax rate? Round your answer to 2 decimal places. %

need part c

Answer 1

Income from Salary	$        139,000.00
Dividend Income	$          14,000.00
Interest Income Home Depot Bonds	$            3,500.00
Short term captial gain from sale of shares disney	$            4,400.00
Long term captial gain from sale of shares google	$          14,600.00
Gross Taxable Income	$        175,500.00
Less Exemption	$            4,000.00
Less Deduction	$            7,500.00
Net Taxable Income	$        164,000.00
Long Term Capital Gain tax @ 15 %	$            2,190.00
Taxable Income excludind LTCG	$        149,400.00
Tax as per federal rates and table on 149400	$          34,903.00
Total Tax Liablty ( 34903+2190)	$          37,093.00
Marginal Tax Rate	28.00%
Average tax Rate	21.14%