Lucille's taxable income and federal tax liability for 2020

INCOME:

Salary

$85,000

Business Income

27,000

Interest income from taxable bonds

14,000

Tax-exempt bond interest

5,500

TOTAL INCOME

$131,500

DEDUCTIONS:

Business expenses

$8,500

Itemized deductions

15,000

TOTAL DEDUCTIONS

$23,500

(round to dollars and ignore the qualified business income deduction and self-employment taxes for this problem).First calculate the gross income, then calculate taxable income and the federal tax liability. (Calculate the tax using the tax rate schedule. Do not round interim tax calculations. Round the amount entered into the cell to the nearest whole dollar. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)

Salary		$
Business income
Interest income
Tax-exempt interest income
Total income from whatever source derived
Minus:	Exclusions, as provided in the tax law
	Tax-exempt interest income
Gross income
Minus:	Deductions for Adjusted gross income
	Business expenses
Adjusted gross income (AGI)
Minus:	Deductions from AGI:
	Itemized deductions
Taxable income		$
Tax		$

Lucille's marginal, average, and effective tax rates. (Round your answers to two decimal places, X.XX%.)

Lucille's marginal tax rate is		%.
Lucille's average tax rate is		%.

Lucille's effective tax rate is

%.