Jenna is a single taxpayer. During 2018, she earned wages of $126,000. 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 $7,200. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent.

Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of deductions. In 2018, the personal exemption is for taxpayers and their dependents is zero. A capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) than its purchase price. In 2018, for most taxpayers a long-term capital gain is taxed at a maximum rate of 15%, while a short-term capital gain is taxed as ordinary income [for high-income taxpayers the tax rate on long-term capital gains is 20%). Investment income consists of dividend and interest income. Interest income (except interest on state and local government debt which is exempt from federal taxes) is taxed as ordinary income, while dividends are taxed at the same rate as long-term capital gains V. Generally, interest payments are not tax deductible for individuals except for interest on home mortgages within certain limits. Projected 2018 tax rate schedules are shown for single individuals and married couples filing jointly. If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 14,089.50 24.0 32,089.50 32.0 45,689.50 35.0 150,689.50 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 22.0 Standard deduction for individual: $12,000 If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $ 165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 Married couples Filing Joint Returns You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 1,905.00 12.0 8,907.00 22.0 28,179.00 24.0 64,179.00 32.0 91,379.00 35.0 161,379.00 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $126,000. 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 $7,200. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent. Individuals pay taxes on wages, on investment income, and on the profits of proprietorships and partnerships. Taxable income is defined as gross income less a set of deductions. In 2018, the personal exemption is for taxpayers and their dependents is zero. A capital gain (loss) is the profit (loss) from the sale of a capital asset for more (less) than its purchase price. In 2018, for most taxpayers a long-term capital gain is taxed at a maximum rate of 15%, while a short-term capital gain is taxed as ordinary income [for high-income taxpayers the tax rate on long-term capital gains is 20%). Investment income consists of dividend and interest income. Interest income (except interest on state and local government debt which is exempt from federal taxes) is taxed as ordinary income, while dividends are taxed at the same rate as long-term capital gains V. Generally, interest payments are not tax deductible for individuals except for interest on home mortgages within certain limits. Projected 2018 tax rate schedules are shown for single individuals and married couples filing jointly. If Your Taxable Income Is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 2018 Individual Tax Rates Single Individuals You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 952.50 12.0 4,453.50 14,089.50 24.0 32,089.50 32.0 45,689.50 35.0 150,689.50 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 30.1 37.0 22.0 Standard deduction for individual: $12,000 If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $ 165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 Married couples Filing Joint Returns You Pay This Plus This Percentage Amount on the on the Excess over the Base of the Bracket Base (Marginal Rate) $0 10.0% 1,905.00 12.0 8,907.00 22.0 28,179.00 24.0 64,179.00 32.0 91,379.00 35.0 161,379.00 37.0 Average Tax Rate at Top of Bracket 10.0% 11.5 17.1 20.4 22.8 26.9 37.0 Standard deduction for married couples filing jointly: $24,000 Quantitative Problem: Jenna is a single taxpayer. During 2018, she earned wages of $126,000. 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 $7,200. How much does Jenna owe to the IRS for taxes? Do not round intermediate calculations. Round your answer to the nearest cent