Chapter 3 Financial Planning Exercise 1 Mary watson is 24 years old and single lives n an apartment, and has no dependents. Last year she earned S35 600 as a sses assstant for focused Business Aytcs: S,S62 of he wages was withheld for federal income taxes. In addition, she had interest income of $184. The standard deduction in 2011 was $5,800 for single. The exemption was clalmed to be worth $3,700. The appropriate tax rate schedule is shown below: IBIT 3.3 Sample Tax Rate Schedules rates levied on personal lncome vary with the amount of reported taxable income and the taxpayer's ing status. 2011 Tax Rate Schedules Schedule X-If your fling status is Single The tax is If your taxable income is: of the But not mount over Over 0 $8,500 34,500 8,500 34,500 83,600 174,400 _10% sas0.00 + 15% 83,600 4,750.00 + 2S% 174,400 17,025.00 + 28% 379,500 42,449.00 + 33% 100,016.50 + 35% so 8,500 34,500| 83,600 174,400 379,150| a. Estimate her taxable income $ 29846 # b. Estimate her tax labilty. Round the answer to the nearest labilty.) cent. Use unrounded values in later caicuations. (ine: use the tax rate schedules given in Exhibit 3.3 to determine her tax 25 c. Estimate her tax refund or tax owed. Enter tax owed, if any, as negative amount. Round the answer to the nearest cent. s 1000