Question
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 $91,000 in salary. She received $18,500 of dividend income. She received $5,800 of interest income on Home Depot bonds. She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,700. She received $12,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,700. 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.
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