. She received $131,000 in salary. . She received $17,500 of dividend income. . She received $6,400 of interest income on Home Depot bonds. . She received $21,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $5,700. . She received $9,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,600. Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500. These amounts will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ b. What is her marginal tax rate? Round your answer to 1 decimal place. % c. What is her average tax rate? Round your answer to 2 decimal places. 1 Personal taxes Salary $131,000.00 Tax Table for Single Individuals: Taxable income Dividend Income Interest Income LT Stock Sale LT Stock Cost ST Stock Sale ST Stock Cost Personal Exemption Itemized Deductions Aplicable Tax Rate on Dividends & LT Capital Gains $17,500.00 $6,400.00 $21,000.00 $5,700.00 $9,000.00 $6,600.00 $4,000.00 $7,500.00 15.00% Percentage Amount Paid on Excess on Base over Base $0.00 $0.00 1000% $9 225 00 922 50 15.00% $37,450.00 $5,156.25 25.00% $90.750 00 $18,48125 28.00% $189,750.00 $46,075.25 33.00% $411,500.00 $119.40125 35 00% $413,200.00 $119,996.25 39.60% a. Calculation of Federal Tax Liability Calculation of Taxable income Salary Interest Income ST Capital Gains Formulas WA #N/A #N/A Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9,225 $9,225-$37,450 $37,450 $90,750 $90,750-$189,750 $189,750-S411,500 S411,500-S$413,200 Over $413,200 You Pay This Amount on this Base of the Bracket $ 0 922.50 5,156.25 18,481.25 46,075.25 119,401.25 119,996.25 Plus This Percentage on the Excess over the Base Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 Married Couples Filing Joint Returns If Your Taxable Income Is Up to $18,450 $18,450-574,900 $74.900-5151,200 S151,200-$230,450 S230,450-$411,500 $411,500-$464,850 Over S464,850 You Pay This Amount on the Base of the Bracket S 0 1,845.00 10,312.50 29,387.50 51,577.50 111,324.00 129.996,50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6 Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9,225 $9,225-$37,450 $37,450-590,750 $90,750-$189,750 $189,750-$411,500 5411,500-$S413,200 Over $413,200 You Pay This Amount on the Base of the Bracket $ 0 922.50 5,156.25 18,481.25 46,075.25 119,401.25 119,996.25 Plus This Percentage on the Excess over the Base Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29.0 39.6 Married Couples Filing Joint Returns If Your Taxable Income Is Up to $18,450 $18,450-$74,900 $74.900-5151,200 S151,200-$230,450 S230,450-$411.500 $411,500-5464.850 Over 5464,850 You Pay This Amount on the Base of the Bracket $ 0 1,845.00 10,312.50 29,387.50 51,577.50 111.324.00 129.996,50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6
