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Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:
- She received $88,000 in salary.
- She received $20,000 of dividend income.
- She received $6,300 of interest income on Home Depot bonds.
- She received $24,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,100.
- She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,800.
- 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.
Personal taxes | |||||
Salary | $88,000.00 | Tax Table for Single Individuals: | |||
Dividend Income | $20,000.00 | Taxable Income | Amount Paid on Base | Percentage on Excess over Base | |
Interest Income | $6,300.00 | $0.00 | $0.00 | 10.00% | |
LT Stock Sale | $24,500.00 | $9,225.00 | $922.50 | 15.00% | |
LT Stock Cost | $6,100.00 | $37,450.00 | $5,156.25 | 25.00% | |
ST Stock Sale | $14,000.00 | $90,750.00 | $18,481.25 | 28.00% | |
ST Stock Cost | $7,800.00 | $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% | |
Apllicable Tax Rate on Dividends & LT Capital Gains | 15.00% | ||||
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What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.
$
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What is her marginal tax rate? Round your answer to 1 decimal place.
%
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What is her average tax rate? Round your answer to 2 decimal places.
%
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