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 $83,000 in salary. She received $16,500 of dividend income. She received $4,100 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 $6,400. . She received $8,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,100. Mary receives one exemption (54,000), 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 X Excel template Saved File Home Insert Formulas Data Review View Help Tell m ale X Arial 10 BI U Dab Paste a. A A A Clipboard Font II lili 191 Currency $ % 60 .00 .00 0 Conditii Formatt Undo Alignment Number 316 B 4 Dividend Income 5 Interest Income 6 LT Stock Sale 7 LT Stock Cost 8 ST Stock Sale 9 ST Stock Cost 10 Personal Exemption 11 Itemized Deductions 12 Apllicable Tax Rate on Dividends & LT Capital Gains 13 14 a. Calculation of Federal Tax Liability 15 Calculation of Taxable income: 16 Salary 17 Interest Income 18 ST Capital Gains 19 Income before Exemption and Deductions $16,500.00 $4,100.00 $23,500.00 $6,400.00 $8,500.00 $7,100.00 $4,000.00 $7,500.00 15.00% Sheet1 Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9.225 $9,225-537,450 S37,450-590,750 590,750-S189,750 S189,750-S411,500 S411,500-55413,200 Over $413,200 You Pay This Amount on the Base of the Bracket 0 922.50 5.156.25 18,481.25 46,075.25 119,401.25 119,996.25 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 Married Couples Filing Joint Returns If Your Taxable Income Is Up to $18,450 S18,450-574,900 574,900-S151,200 S151,200-5230,450 S230,450-$411,500 S411,500-5464,850 Over S464,850 You Pay This Amount on the Base of the Bracket 0 1.845.00 10.312.50 29,387.50 51,577.50 111,324.00 129,996.50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6 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
