close solutoin list

PERSONAL TAXES 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 $82,000 in salary. She received $12,000 of dividend income. She received $5,000 of interest income on Home Depot bonds. She received $22,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,000. She received $10,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,500. Mary receives one exemption ($3,950), 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 the tax tables presented in the chapter. a. What is Mary’s federal tax liability? b. What is her marginal tax rate? c. What is her average tax rate?

BuyFind

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285867977
BuyFind

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
Publisher: Cengage Learning
ISBN: 9781285867977

Solutions

Chapter
Section
Chapter 3, Problem 18P
Textbook Problem

PERSONAL TAXES 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 $82,000 in salary.
  • She received $12,000 of dividend income.
  • She received $5,000 of interest income on Home Depot bonds.
  • She received $22,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,000.
  • She received $10,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,500.
  • Mary receives one exemption ($3,950), 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 the tax tables presented in the chapter.

  1. a. What is Mary’s federal tax liability?
  2. b. What is her marginal tax rate?
  3. c. What is her average tax rate?

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 3 Solutions

Fundamentals of Financial Management (MindTap Course List)
Show all chapter solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
PRESENT VALUE FOR VARIOUS DISCOUNTING PERIODS Find the present value of 500 due in the future under each of the...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Why is productivity important?

Principles of Microeconomics (MindTap Course List)

Describe an employee self-service system.

Pkg Acc Infor Systems MS VISIO CD