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 $134,000 in salary She received $17,500 of dividend income She received $4,200 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 $6,200 She received $12,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,300 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 Personal taxes Salary Tax Table for Single Individuals Taxable income $17,500 00 $4,200 00 S23,000 00 $6,200 00 S12 500 00 $7,300 00 $4,000 00 $7,500 00 15 00 Amount Paid on Base $0 00 S0 00 $9 225 00 S922 50 $37,450 00 $5,156 25 S90 750 00 $18,481 25 S189,750 00 $46,075 25 $411,500 00 $119,401 25 S413,200 00 $119 996 25 Percentage on Excess over Base 10 00 15 00 25 00 28 00 33 00 35 00 39 60 Dividend Income Interest Income LT Stock Sale LT Stock Cost ST Stock Sale ST Stock Cost Personal Exemption Itemized Deductions Apllicable Tax Rate on Dividends LT Capital Gains a Calculation of Federal Tax Liability Calculation of Taxable income Salary Interest Income ST Capital Gains Income before Exemption and Deductions Personal Exemption Itemized Deductions Taxable income before Dividends LT Capital Gains Taxes on Taxable income Before Dividends LT Capital Gains Tax Liability on Base of Bracket Tax Liability on Excess over Base Tax on Taxable income before Dividends LT Capital Gains Taxes on Dividends LT Capital Gains Dividend Income LT Capital Gains Income Total Dividend LT Capital Gains Income Tax on Dividends LT Capital Gains Income Total Federal Tax Liability Formulas N A N A N A N A N A N A N A N A N A N A N A N A N A N A N A b Calculation of Marginal Tax Rate Marginal Tax Rate N A c Calculation of Average Tax Rate Average Tax Rate N A

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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 $134,000 in salary  She received $17,500 of dividend income  She received $4,200 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 $6,200  She received $12,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,300  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    Personal taxes Salary Tax Table for Single Individuals  Taxable income $17,500 00 $4,200 00 S23,000 00 $6,200 00 S12 500 00 $7,300 00 $4,000 00 $7,500 00 15 00  Amount Paid on Base $0 00 S0 00 $9 225 00 S922 50 $37,450 00 $5,156 25 S90 750 00 $18,481 25 S189,750 00 $46,075 25 $411,500 00 $119,401 25 S413,200 00 $119 996 25 Percentage on Excess over Base 10 00  15 00  25 00  28 00  33 00  35 00  39 60  Dividend Income Interest Income LT Stock Sale LT Stock Cost ST Stock Sale ST Stock Cost Personal Exemption Itemized Deductions Apllicable Tax Rate on Dividends   LT Capital Gains a  Calculation of Federal Tax Liability Calculation of Taxable income  Salary Interest Income ST Capital Gains Income before Exemption and Deductions Personal Exemption Itemized Deductions Taxable income before Dividends   LT Capital Gains Taxes on Taxable income Before Dividends   LT Capital Gains  Tax Liability on Base of Bracket Tax Liability on Excess over Base Tax on Taxable income before Dividends   LT Capital Gains Taxes on Dividends   LT Capital Gains  Dividend Income LT Capital Gains Income Total Dividend   LT Capital Gains Income Tax on Dividends   LT Capital Gains Income Total Federal Tax Liability Formulas  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A  N A b  Calculation of Marginal Tax Rate Marginal Tax Rate  N A c  Calculation of Average Tax Rate Average Tax Rate  N A

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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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