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 $88,000 in salary. 

She received $20,000 of dividend income. 

She received $6,300 of interest income on Home Depot bonds. 

She received $24,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,100. 

She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,800. 

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.

What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

1. 
   

2. What is her marginal tax rate? Round your answer to 1 decimal place.

3. What is her average tax rate? Round your answer to 2 decimal places.
   
    

4. Personal Taxes
   Salary			$88,000.00		Tax table for single individuals:
   Dividend Income			$20,000.00		Taxable income	Amount paid on base	Percentage on excess over base
   Interest Income			$6,300.00		$0.00	$0.00	10.00%
   LT stock Sale			$24,500.00		$9,225.00	$922.50	15.00%
   LT stock Cost			$6,100.00		$37,450.00	$5,156.25	25.00%
   ST stock Sale			$14,000.00		$90,750.00	$18,481.25	28.00%
   ST stock Cost			$7,800.00		$189,750.00	$46,075.25	33.00%
   Personal Exemption			$4,000.00		$411,500.00	$119,401.25	35.00%
   Itemized Deduction			$7,500.00		$413,200.00	$119,996.25	39.60%
   Applicabel tax rate on divedends & LT capital gains			15.00%

 

Table 3.5 2015 Individual Tax Rates Single Individuals You Pay This Amount on the Average Tax Rate at Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% If Your Taxable Income Is Up to $9,225 $9,225-S37,450 $37,450-$90,750 $90,750-S189,750 S189,750-S411,500 S411,500-SS413,200 Over $413,200 Base of the Bracket Top of Bracket 10.0% 922.50 15.0 13.8 5,156.25 18,481.25 46,075.25 119,401.25 119,996.25 25.0 20.4 28.0 24.3 33.0 29.0 35.0 29.0 39.6 39.6 Married Couples Filing Joint Returns You Pay This Amount on the Plus This Percentage on the Excess over the Base (Marginal Rate). 10.0% Average Tax Rate at If Your Taxable Income Is Up to $18,450 s18,450-$74,900 S74,900-S151,200 S151,200-$230,450 S230,450-$411,500 $411,500-$464,850 Over $464,850 Base of the Bracket Topof Bracket 10.0% 1,845.00 10,312.50 29,387.50 51,577.50 111,324.00 15.0 13.8 25.0 19.4 28.0 22.4 33.0 27.1 35.0 28.0 129,996.50 39.6 39.6