Mr. and Mrs. Lay's taxable income is $681,000, which includes a $22,230 dividend on their investment in Rexford Mutual Fund. Mr. and Mrs. Lay's marginal rate on ordinary income is 37 percent, and their entire Rexford dividend is subject to the Medicare contribution tax. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that the entire $22.230 was an ordinary dividend, b. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that $17,740 was an ordinary dividend and $4.490 was a capital gain distribution c. Compute the Lays' total tax on this dividend if their Form 1099 from Rexford reported that $7.220 was an ordinary dividend, $10,820 was a qualified dividend distribution, and $4,190 was a capital gain distribution Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is: The tax is: Not over $19,750 10% of taxable income Over $19,750 but not over $80,250 $1,975 + 12% of excess over $19.750 Over $80,250 but not over $171,050 $9,235 + 22% of excess over $80,250 Over $171,050 but not over $326,600 $29.211 + 24% of excess over $171,050 Over $326,600 but not over $414,700 $66,543 + 32% of excess over $326,600 Over $414 700 but not over $622,050 $94.735 + 35% of excess over $414,700 Over $622,050 $167,307.50 + 37% of excess over $622,050 Married Filing Separately If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9,875 Over $40,125 but not over $85,525 $4.617.50 +22% of excess over $40.125 Over $85,525 but not over $163,300 $14.605.50 +24% of excess over $85,525 Over $163,300 but not over $207,350 $33.271.50 + 32% of excess over $163,300 Over $207,350 but not over $311,025 $47.367.50 + 35% of excess over $207,350 Over $311,025 $83,653.75 + 37% of excess over $311.025 Heads of Household If taxable income is: The tax is: Not over $14,100 10% of taxable income Over $14,100 but not over $53,700 $1,410 + 12% of excess over $14,100 Over $53,700 but not over $85,500 $6,162 + 22% of excess over $53,700 Over $85,500 but not over $163,300 $13,158 + 24% of excess over $85,500 Over $163,300 but not over $207,350 $31.830 + 32% of excess over $163,300 Over $207,350 but not over $518,400 $45,926 + 35% of excess over $207,350 Over $518,400 $154,793.50 + 37% of excess over $518,400 Single If taxable income is: The tax is: Not over $9,875 10% of taxable income Over $9,875 but not over $40,125 $987.50 + 12% of excess over $9.875 Over $40,125 but not over $85,525 $4,617.50 + 22% of excess over $40,125 Over $85,525 but not over $163,300 $14,605.50 + 24% of excess over $85,525 Over $163,300 but not over $207,350 $33,271.50 + 32% of excess over $ 163,300 Over $207,350 but not over $518,400 $47.367.50 + 35% of excess over $207,350 Over $518,400 $156,235 + 37% of excess over 518.400 Tax rates for capital gains and qualified dividends. Rate Married Filing Married Filing Single Head of Jointly Separately Household 0%" $0 - $80,000 $0-$40,000 $0-$40,000 $0-$53,600 15%** $80,001 - $40,001 - $40,001 - $53,601 - $496,600 $248,300 $441,450 $469,050 20% $496,601+ $248,301+ $441,451+ $469,051+ * The highest income amount in this range for each filing status is referred to as maximum zero rate amount ** The highest income amount in this range for each filing status is referred to as maximum 15-percent amount