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3 - 1 8 PERSONAL TAXES Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She
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 $ in salary.
She received $ of dividend income.
She received $ of interest income on Home Depot bonds.
She received $ from the sale of Disney stock that was purchased years prior to the sale at a cost of $
She received $ from the sale of Google stock that was purchased months prior to the sale at a cost of $
Mary receives one exemption $ and she has allowable itemized deductions of $ These amounts will be deducted from her gross income to determine her taxable income.
Assume that her tax rates are based on the tax tables presented in the chapter.
a What is Mary's federal tax liability?
b What is her marginal tax rate?
c What is her average tax rate?
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