Excel Online Structured Activity: Personal taxes Mary Jarvis is a single individual who is working on hiling her tax return for the previous year. She has assembled the following relevant information: . She received $86,000 in salary. . She received $17,000 of dividend income She received $6,500 of interest income on Home Depot bonds. She received $21,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,600 She received $9,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,100 . 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. X Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. b. What is her marginal tax rate? Round your answer to 1 decimal place. c. What is her average tax rate? Round your answer to 2 decimal places. % Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9.225 $9,225-37.450 $37,450-590,750 $90,750-$189,750 $189,750-5411,500 S411,500-S5413,200 Over 5413,200 You Pay This Amount on the Base of the Bracket $ 0 922.50 5,156.25 18,481.25 46,075.25 119,401.25 119.996.25 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 35.0 39.6 Married Couples Filing Joint Returns You Pay This If Your Taxable Amount on the Income Is Base of the Bracket Up to $18,450 S 0 S18,450-$74,900 1,845.00 $74,900-5151,200 10,312.50 S151,200-$230,450 29,387.50 S230,450-S411,500 51,577.50 S411,500-5464,850 111,324.00 Over S464,850 129,996.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6 Personal taxes Salary $86,000.00 Tax Table for Single Individuals: Taxable income Dividend Income Interest Income LT Stock Sale LT Stock Cost ST Stock Sale ST Stock Cost Personal Exemption Iterized Deductions Apllicable Tax Rate on Dividends & LT Capital Gains $17,000.00 $6,500.00 $21,000.00 $5,600.00 $9,500.00 $6,100.00 $4,000.00 $7,500.00 15.00% Amount Paid on Base $0.00 $0.00 $9.225.00 $922 50 $37.450.00 $5,156.25 $90,750.00 $18,481.25 $189,750.00 $46,075.25 $411,500.00 $119,401.25 $413,200.00 $119.996.25 Percentage on Excess over Base 10.00% 15.00% 25.0096 28.00% 33.0096 35.00% 39.60%
