Question
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 $96,000 in salary. She received $18,000 of dividend income. She received $6,800 of interest income on Home Depot bonds. She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,400. She received $10,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,200. 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.
What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.
What is her marginal tax rate? Round your answer to 1 decimal place.
What is her average tax rate? Round your answer to 2 decimal places. fill in the blank
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started