What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $ What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place. % What is her average tax rate? Do not round intermediate calculations. Round your answer to two 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 $96,000 in salary.
She received $11,500 of dividend income.
She received $9,000 of interest income on Home Depot bonds.
She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,700.
She received $9,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $6,700.
Mary only has allowable itemized deductions of $6,700, so she will take the standard deduction of $12,400. The standard deduction is subtracted from her gross income to determine her taxable income.
Assume that her tax rates are based on Table 3.5.
Taxable income = 130,400
Tax Bracket: $85,525-163,300
Pay amount on base of bracket: $14,605.50
Plus this percentage on excess: %24
Average tax rate at top of bracket: %20.4
What is Mary's federal tax liability? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place.
%
What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places.
%
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