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 $110,000 in salary She received $20,000 of dividend income. She received $3,500 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 $6,400 She received $11,500 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 ($4,000), 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. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X HI Orensreadsheet a. What is Mary's federal tax hability? 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 % c. What is her average tax rate Round your answer to 2 decimal places Opboard Tont Unde B22 Formatting Table tiche B D E G 1 Personal taxes 2 3 Salary M Tax Table for Single Individuals: Taxable income 4 Dividend Income 5 Interest Income 6 LT Stock Sale 7 LT Stock Cost 8 ST Stock Sale 9 ST Stock Cost 10 Personal Exemption 11 Hemed Deductions 12 Aplicable Tax Rate on Dividends & LT Capital Gains 13 14 a Calculation of Federal Tax Liability 15 Calculation of Taxable income 16 Salary 17 Inforest Income 18 ST Capital Guns 19 Income before Exemption and Doductions 20 Personal Exemption 21 tomced Deductions 22 Taxable income before Dividends & LT Capitains $20,000.00 $3,500.00 $24.00000 $0.400.00 $11,500.00 $4400 00 $4,000.00 $7,500.00 15.00% Porcentage Amount Paid on Excess on Base over Base $0.00 $0.00 10.00% $9.225.00 $922 50 1500% $37,450.00 $5,156.25 25 00% $90.750 00 $18,481.25 28.00% $189,750 00 $40,075 25 33 009 $411,500.00 $119,401.25 35 00 $413 200.00 $119.990 25 39.60% Formus ANA NA WNA ANA WNIA INA ANA Sheet1 Calculation Mode: Automatic Wetboek 13 Type here to search B D ANA #N/A #N/A ANA HINA UNA #N/A #NA A 18 ST Capital Gains 19 Income before Exemption and Deductions 20 Personal Exemption 21 Itemized Deductions 22 Taxable income before Dividends & LT Capital Gains 23 24 Taxes on Taxable income Before Dividends & LT Capital Gains 25 Tax Liability on Base of Bracket 26 Tax Liability on Excess over Base 27 Tax on Taxable income before Dividends & LT Capital Gains 28 29 Texes on Dividends & LT Capital Gains. 30 Dividend Incomo 31 LT Capital Gains Income 32 Total Dividend & LT Capital Gains Income 33 Tax on Dividends & LT Capital Gains Income 34 35 Total Federal Tax Liability 36 37 b. Calculation of Marginal Tax Rate 38 Marginal Tax Rate 39 40 C. Calculation of Average Tax Rate 41 Average Tax Rate 42 #N/A WNA #N/A INA UNA #N/A
