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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 relev She received
Mary Jarvis is a single individual who is working on filing her tax-return for the previous year. She has assembled the following relev She received $101,000 in salary. She received $13,000 of dividend income. She received $4,700 of interest income on Home Depot bonds. She received $23,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,500. She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,300. Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted 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 spre W W W W . X 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.
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