Mary Jarvis is a single individual who is working on fling her tax return for the previous year. She has assembled the following relevant information: She received $140,000 in salary. She received $14,500 of dividend income. • She received $5,700 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 $9,400. • She received $11,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,600. • Mary only has allowable itemized deductions of $7,600, so she will take the standard deduction of $12,000 will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. a. 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 cen b. What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place. c. What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal pleces
Mary Jarvis is a single individual who is working on fling her tax return for the previous year. She has assembled the following relevant information: She received $140,000 in salary. She received $14,500 of dividend income. • She received $5,700 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 $9,400. • She received $11,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,600. • Mary only has allowable itemized deductions of $7,600, so she will take the standard deduction of $12,000 will be deducted from her gross income to determine her taxable income. Assume that her tax rates are based on Table 3.5. a. 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 cen b. What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place. c. What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal pleces
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 16DQ
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Transcribed Image Text: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 $140,000 in salary.
• She received $14,500 of dividend income.
• She received $5,700 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 $9,400.
• She received $11,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,600.
• Mary only has allowable itemized deductions of $7,600, so she will take the standard deduction of $12,000 will be deducted from her gross income to
determine her taxable income.
Assume that her tax rates are based on Table 3.5.
a. 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.
b. What is her marginal tax rate? Do not round intermediate calculations. Round your answer to one decimal place.
c. What is her average tax rate? Do not round intermediate calculations. Round your answer to two decimal places.
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT