Mary Jarvis has assembled the following relevant information:

She received $127,000 in salary.

She received $16,500 of dividend income.

She received $4,500 of interest income on Home Depot bonds.

She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,600.

She received $14,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,000.

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.

Open spreadsheet

Personal taxes

Salary $127,000.00 Tax Table for Single Individuals:

Dividend Income $16,500.00 Taxable Income Amount Paid on Base Percentage on Excess over Base

Interest Income $4,500.00 $0.00 $0.00 10.00%

LT Stock Sale $22,500.00 $9,225.00 $922.50 15.00%

LT Stock Cost $6,600.00 $37,450.00 $5,156.25 25.00%

ST Stock Sale $14,500.00 $90,750.00 $18,481.25 28.00%

ST Stock Cost $4,000.00 $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%

Applicable Tax Rate on Dividends & LT Capital Gains 15.00%

What is Mary's federal tax liability? Round your answer to the nearest cent.

$ fill in the blank 2

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

fill in the blank 3 %

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

fill in the blank 4 %