Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $126,000 from salary and wages (ordinary income). 2. $3,000 in interest income. 3. $3,000 in dividend income. 4. $5,000 in profit from sale of a stock they purchased 2 years ago. 5. $1,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2, LOADING... , to work this problem.

a. How much will Mike and Julie pay in federal income taxes on 2 above?

b. How much will Mike and Julie pay in federal income taxes on 3 above? (Note: Remember that dividend income is taxed differently than ordinary income.)

c. How much will Mike and Julie pay in federal income taxes on 4 above?

d. How much will Mike and Julie pay in federal income taxes on 5 above?

TABLE 1.2: Tax Rates and Income Brackets for Joint Returns(2015)
	Taxable Income
Tax Rates	Joint Returns
10%	$0 to $18,150
15%	$18,151 to $73,800
25%	$73,801 to $148,850
28%	$148,851 to $226,850
33%	$226,851 to $405,100
35%	$405,101 to $457,600
39.6%	Over $457,600