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Need help with A, B, C Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She
Need help with A, B, C
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 $19,000 of dividend income. - She received $6,300 of interest income on Home Depot bonds. - She received $24,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $8,400. - She received $8,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,900. - Mary only has allowable itemized deductions of $6,900, so she will take the standard deduction of $12,400. The standard deduction is subtracted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. a. What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. b. What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place. % c. What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places. % 2020 Individual Tax Rates marriea coupes ring Joint keturns Notes: 1. These are the 2020 tax rates that will be paid on tax returns due April 15, 2021. The income ranges at which each tax rate takes effect are indexed with inflation, so they change each year. 2. The average tax rates are always below the marginal rates, but in 2020 the average at the top of the brackets approaches 37% as taxable income rises without limit. 3. In 2018 , the personal exemption for the taxpayer and dependents was eliminated. With the deduction limitation on state and local property, income, and sales taxes and the existence of payroll taxes (Social Security and Medicare taxes), the 2020 effective tax rate will be higher than 37%Step by Step Solution
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