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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:

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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: - She received $114,000 in salary. - She received $15,000 of dividend income. - She received $5,600 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 $7,000. - She received $10,500 from the sale of Google stock that was purchased 6 months prior to the saie at cost of $5,400. - 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: Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent, Do not round intermediate calculations. b. 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. Table 3.52015 Individual Tax Rates Single Individuals Married Couples Filing Joint Returns 1 Personal taxes 7. Salary $114,00000 Tax Table for Single individuals: 4 Dividend income 5 . Interest income 6 LT Stock Sale 7 LT Stock Cost R. ST Stock Sale 9 ST Stock Cost in Personal Exemption 11 ttemized Deductions 12 Aplicable Tax Rate on Dividends \& LT Capital Gains 17. 14 a. Calculation of Federal Tax Liability Calculation of Taxable income: Salary Interest income ST Captal Gains Income before Exemption and Deductions Personal Exemption ttemized Deductions Taxable income before Dividends \& LT Capital Gains Taxes on Taxable inceme Before Dividends \& LT Capital Gains: Tax Liability on Base of Bracket Tax Liability on Excess over Base Tax on Taxabie incorne before Dividends \& LT Capital Gains 29 Taxes on Dividends & LT Caplal Gains: 79 3n Dividend income 71. LT Capital Gains income 3. Total Dividend \& LT Capital Gains income 33. Tar on Dividends \< Capilal Gains income 25 Total Federal Tax Liabily 36. 37 b. Calculation of Marginal Tax Rate 38 Marginal Tax Rate 39 An c. Calculation of Average Tax Rate 41 Average Tax Rate 42 42 44 45 46 47 48

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