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Ron Barnes is a single individual who is working on filing his tax return for the previous year. He has assembled the following relevant information:
Ron Barnes is a single individual who is working on filing his tax return for the previous year. He has assembled the following relevant information:
- He received $107,000 in salary.
- He received $19,500 of dividend income.
- He received $7,400 of interest income on Home Depot bonds.
- He received $21,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,500.
- He received $13,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,700.
- Ron receives one exemption ($4,000), and he has allowable itemized deductions of $7,500. These amounts will be deducted from his gross income to determine her taxable income.
What is Ron's federal tax liability?
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