Taxable Income
Tax Rates	Joint Returns
10%	$0 to $19,750
12%	$19,751 to $80,250
22%	$80,251 to $171,050
24%	$171,051 to $326,600
32%	$326,601 to $414,700
35%	$414,701 to $622,050
37%	Over $622,050

Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year they have the following taxable income: 1. $119,000 from salary and wages (ordinary income). 2. $1,000 in interest income. 3. $5,000 in dividend income. 4. $1,000 in profit from sale of a stock they purchased two years ago. 5. $1,000 in profit from a stock they purchased this year and sold this year. Use the federal income tax rates given in Table 1.2, B , to work this problem. a. How much will Mike and Julie pay in federal income taxes on 2 above? b. How much will Mike and Julie 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 Julie pay in federal income taxes on 4 above? d. How much will Mike and Julie pay in federal income taxes on 5 above? a. The amount Mike and Julie will pay in federal income taxes on 2, their interest income, is $ (Round to the nearest dollar.) b. The amount Mike and Julie will pay in federal income taxes on 3, their dividend income, is $. (Round to the nearest dollar.) (Note: Remember that dividend income is taxed differently than ordinary income.) c. The amount Mike and Julie will pay in federal income taxes on 4, the profit from the sale of stock that they purchased two years ago, is $ (Round to the nearest dollar.) d. The amount Mike and Julie will pay in federal income taxes on 5, the profit on the sale of stock they purchased and sold this year, is $| (Round to the nearest dollar.)