Mike and Linda Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income 1. $120,000 from salary and wages (ordinary income) 2. $4,000 in interest income 3. $1,000 in dividend income. 4. $4,000 in profit from sale of a stock they purchased 2 years ago 5. $5,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2 below to work this problem a. How much will Mike and Linda pay in federal income taxes on 2 above? b. How much will Mike and Linda 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 Linda pay in federal income taxes on 4 above? d. How much will Mike and Linda pay in federal income taxes on 5 above? TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2012) laxable Income Tax Rates 10% 15% 25% 28% 29% 35% Joint Returns $0 to $17,400 $17,401 to $70,700 $70,701 to $142,700 $142,701 to $217,450 $217,451 to $388,350 Over $388,350 Enter your answer in each of the answer boxes