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 $129,000 in salary. She received $12.500 of dividend income. She received $7,700 of interest income on Home Depot bonds. She received $21,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,400. . She received $11,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,000. 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. Assume that her tax rates are based on Table 2.5. 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. 011 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 9% C D t 1 Personal taxes 2 3 Salary Tax Table for Single Individuals: Taxable income $12,500.00 $7.700.00 $2100000 $5,400.00 $11,000 00 $6,000.00 $4.000.00 $7,500.00 15 DON Percentage Amount Paid on Excess on Base over Base $0.00 50.00 10:00 $9,225.00 $922 50 15.00% $37 450 00 55,156.25 25.00% $90.750 00 $18.48125 28.00 $189,750 00 345,075 25 33.00 $411 500 00 S11940125 35 00 5413.200.00 $119.995 25 39,60% 4 Dividend Income 3 Interest Income 6 LT Stock Sale 7 LT Stock Cost ST Stock Sale 9 ST Stock Cost 10 Personal Exemption 11 Itemcred Deductions 12. Aplicable Tax Rate on Dividends & LT Capital Gains 13 14 Calculation of Federal Tax Liability 15. Cakulation or taxable income 16 Salary 17 Interest income 18 ST Capital Gains 19 Income before Exemption and Deductions 20 Personal Exempton 21 tamed Deductions Taxable income before Dividends & LT Capital Gains Formulas NA UA ANA NINA NA ANA BA 24 Taxes on Taxable income Before Dividend < Catalans A B D E #NA #NA WNA #NA #NA #NA WNIA 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 Tacable Income before Dividends & LT Capital Gains 28 29 Taxes on Dividends & LT Capital Gains 30 Dividend Income 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 Labuty 36 37 b. Calculation of Marginal Tax Rate 38 Marginal Tax Rate 39 40 C. Calculation of Average Tax Rate 21 Average Tax Rate 42 43 24 45 WNA #NA #N/A
