Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $134,000 in salary. She received $20,000 of dividend income. She received $3,400 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 $6,900. She received $13,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,900. 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. Open spreadsheet What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ fill in the blank 2 What is her marginal tax rate? Round your answer to 1 decimal place. fill in the blank 3 % What is her average tax rate? Round your answer to 2 decimal places.
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $134,000 in salary. She received $20,000 of dividend income. She received $3,400 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 $6,900. She received $13,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,900. 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. Open spreadsheet What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ fill in the blank 2 What is her marginal tax rate? Round your answer to 1 decimal place. fill in the blank 3 % What is her average tax rate? Round your answer to 2 decimal places.
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 43P
Related questions
Question
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information:
- She received $134,000 in salary.
- She received $20,000 of dividend income.
- She received $3,400 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 $6,900.
- She received $13,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,900.
- 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.
-
What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.
$ fill in the blank 2
-
What is her marginal tax rate? Round your answer to 1 decimal place.
fill in the blank 3 %
-
What is her average tax rate? Round your answer to 2 decimal places.
fill in the blank 4 %
Table 3.5 attached
Transcribed Image Text: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-$411,500
$411,500-$$413,200
Over $413,200
Married Couples Filing Joint Returns
If Your Taxable
Income Is
Up to $18,450
$18,450-$74,900
$74,900-$151,200
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
$151,200-$230,450
$230,450-$411,500
$411,500-$464,850
Over $464,850
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
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
Average Tax
Rate at
Top of Bracket
10.0%
13.8
19.4
22.4
27.1
28.0
39.6
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