2018 Individual Tax Rates
Single Individuals
If Your Taxable Income Is	You Pay This Amount on the Base of the Bracket	Plus This Percentage on the Excess over the Base (Marginal Rate)		Average Tax Rate at Top of Bracket
Up to $9,525	$0	10.0	%	10.0	%
$9,525 - $38,700	952.50	12.0		11.5
$38,700 - $82,500	4,453.50	22.0		17.1
$82,500 - $157,500	14,089.50	24.0		20.4
$157,500 - $200,000	32,089.50	32.0		22.8
$200,000 - $500,000	45,689.50	35.0		30.1
Over $500,000	150,689.50	37.0		37.0

Standard deduction for individual: $12,000

Married Couples Filing Joint Returns
If Your Taxable Income Is	You Pay This Amount on the Base of the Bracket	Plus This Percentage on the Excess over the Base (Marginal Rate)		Average Tax Rate at Top of Bracket
Up to $19,050	$0	10.0	%	10.0	%
$19,050 - $77,400	1,905.00	12.0		11.5
$77,400 - $165,000	8,907.00	22.0		17.1
$165,000 - $315,000	28,179.00	24.0		20.4
$315,000 - $400,000	64,179.00	32.0		22.8
$400,000 - $600,000	91,379.00	35.0		26.9
Over $600,000	161,379.00	37.0		37.0

Standard deduction for married couples filing jointly: $24,000

Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $123,000. She doesn't itemize deductions, so she will take the standard deduction to calculate 2018 taxable income. In addition, during the year she sold common stock that she had owned for five years for a net profit of $4,700. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent.

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Quantitative Problem: Andrews Corporation has income from operations of $247,000. In addition, it received interest income of $24,700 and received dividend income of $32,400 from another corporation. Finally, it paid $10,200 of interest income to its bondholders and paid $41,900 of dividends to its common stockholders. The firm's federal tax rate is 21%. What is the firm's federal income tax? Do not round intermediate calculations. Round your answer to the nearest dollar.

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Susan and Stan Britton are a married couple who file a joint income tax return, where the tax rates are based on the tax table 3.5. Assume that their taxable income this year was $346,000. Do not round intermediate calculation.

1. What is their federal tax liability? Round your answer to the nearest dollar.

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2. What is their marginal tax rate? Round your answer to the nearest whole number.

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3. What is their average tax rate? Round your answer to two decimal places.

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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 $91,000 in salary.
• She received $10,500 of dividend income.
• She received $7,400 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 $8,600.
• She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,700.
• Mary only has allowable itemized deductions of $4,700, so she will take the standard deduction of $12,400. The standard deduction is subtracted from her gross income to determine her taxable income.

Assume that her tax rates are based on Table 3.5.

1. 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.

   $

2. What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place.

   %

3. What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places.

   %