The L:inton family tells you the following regarding their financial situation for 2015: Their gross salary is $82,000. They also earned $2,000 in interest from a savings account. They paid real estate taxes of $5,000 and interest on their mortgage of $5,000. They earned $1,500 in interest from a General Motors bond. They made $6,000 on the sale of 5 acres that they had owned for 2 years. They sold AES stock they owned for 10 months for a gain of $2,000. The couple has two children. Exemptions are $3,800/person.

a. WHAT IS THEIR TAXABLE INCOME? SHOW YOUR WORK STEP BY STEP.

b.Use the table below to determine their tax liability: SHOW YOUR WORK.

Taxable Income		Tax Rate
Up to $25,000		10%
$25,000 -$40,000		15%
$40,000 - $55,000		20%
$55,000-$70,000		25%
over $70,000		35%

c. What is the family's marginal tax rate?

d. What is the family's average rate? Show your calculation.