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 $14,500 of dividend income.
• She received $3,400 of interest income on Home Depot bonds.
• She received $24,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,700.
• She received $8,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,000.
• 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.

Dividend Income	$14,500.00		Taxable Income	Amount Paid on Base	Percentage on Excess over Base
Interest Income	$3,400.00		$0.00	$0.00	10.00%
LT Stock Sale	$24,000.00		$9,225.00	$922.50	15.00%
LT Stock Cost	$6,700.00		$37,450.00	$5,156.25	25.00%
ST Stock Sale	$8,500.00		$90,750.00	$18,481.25	28.00%
ST Stock Cost	$5,000.00		$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%
Apllicable Tax Rate on Dividends & LT Capital Gains	15.00%
a. Calculation of Federal Tax Liability
Calculation of Taxable Income:			Formulas
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Interest Income			#N/A
ST Capital Gains			#N/A
Income before Exemption and Deductions			#N/A
Personal Exemption			#N/A
Itemized Deductions			#N/A
Taxable Income before Dividends & LT Capital Gains			#N/A
Taxes on Taxable Income Before Dividends & LT Capital Gains:
Tax Liability on Base of Bracket			#N/A
Tax Liability on Excess over Base			#N/A
Tax on Taxable Income before Dividends & LT Capital Gains			#N/A
Taxes on Dividends & LT Capital Gains:
Dividend Income			#N/A
LT Capital Gains Income			#N/A
Total Dividend & LT Capital Gains Income			#N/A
Tax on Dividends & LT Capital Gains Income			#N/A
Total Federal Tax Liability			#N/A
b. Calculation of Marginal Tax Rate
Marginal Tax Rate			#N/A
c. Calculation of Average Tax Rate
Average Tax Rate			#N/A