Excel Online Structured Activity: 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 $102,000 in salary.
• She received $18,500 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 $5,300.
• She received $12,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,200.
• 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.

1. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

   $ fill in the blank 2

2. What is her marginal tax rate? Round your answer to 1 decimal place.

   fill in the blank 3 %

3. What is her average tax rate? Round your answer to 2 decimal places.

   fill in the blank 4 %

Personal taxes
Salary	$102,000.00		Tax Table for Single Individuals:
Dividend Income	$18,500.00		Taxable Income	Amount Paid on Base	Percentage on Excess over Base
Interest Income	$3,500.00		$0.00	$0.00	10.00%
LT Stock Sale	$21,500.00		$9,225.00	$922.50	15.00%
LT Stock Cost	$5,300.00		$37,450.00	$5,156.25	25.00%
ST Stock Sale	$12,000.00		$90,750.00	$18,481.25	28.00%
ST Stock Cost	$4,200.00		$189,750.00	$46,075.25	33.00%
Personal Exemption	$4,000.00		$411,500.00	$119,401.25	35.00%
Itemized Deductions	$7,500.00		$413,200.00	$119,996.25	39.60%
Apllicable Tax Rate on Dividends & LT Capital Gains	15.00%

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