Lacy is a single taxpayer. In 2021, her taxable income is 42,600. What is her tax liability in each of the following alternative situations? Use tax rate schedule, dividends, and capital gains tax rates.

a. All her income is salary from her employer

Tax Liability: _______

My (incorrect) work:

Taxable income: 42,600

Tax on income to 40, 525 is 4664.

Plus: Tax on balance income 456.5 (42,600 - 40, 525) x 22%.

= 47,720.5

However, my answer is incorrect.

b. Her 42,600 of taxable income includes 1,600 of qualified dividends.

Tax Liability_______

C. Her 42,600 of taxable income includes 5,600 of qualified dividends.

Tax Liability_________