Use the federal income tax rates given in Table 1.2 of your textbook (pg 16) to work this problem. Please show your work for each problem and be sure to label them A,B,C,D. A) How much will Mike and Julie pay in federal income taxes on item 2? B) How much will Mike and Julie pay in federal income taxes on item 3? (Note: remember that dividend income and ordinary income are taxed differently) C) How much will Mike and Julie pay in federal income taxes on item 4? D) How much will Mike and Julie pay in federal income taxes on item 5? F Tax Rates 10% 12% Taxable income Joint Returns $0 to $19,050 $19,051 to $77,400 $77,401 to $165,000 $165,001 to $315,000 $315,001 to $400,000 $400,001 to $600,000 Individual Returns $0 to $9,525 $9,526 to $38, 700 $38,701 to $82,500 $82,501 to $157,500 $157,501 to $200,000 $200,001 to $500,000 Over $500,000 22% 24% 32% 35% 37% Over $600,000 P1.4 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. $125,000 from salary and wages (ordinary income) 2. $1,000 in interest income 3. $3,000 in dividend income 4. $2,000 in profit from sale of a stock they purchased two years ago 5. $2,000 in profit from a stock they purchased this year and sold this year Use the federal income tax rates given in Table 1.2 to work this problem. a. How much will Mike and Julie pay in federal income taxes on item 2 above? b. How much will Mike and Julie pay in federal income taxes on item 3 above? (Note: Remember that dividend income and ordinary income are taxed differently.) c. How much will Mike and Julie pay in federal income taxes on item 4 above? d. How much will Mike and Julie pay in federal income taxes on item 5 above