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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 $106,000 in salary.
- She received $12,000 of dividend income.
- She received $7,800 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 $14,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,400.
- Mary receives one exemption ($4,050), 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 onTable 3.5.
- What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.
- $
- What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place.
- %
- What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places.
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