arvis is a single individual who is working on filing her tax retur e received $107,000 in salary. e received $12,500 of dividend income. e received $3,900 of interest income on Home Depot bonds. e received $22,500 from the sale of Disney stock that was purch e received $13,000 from the sale of Google stock that was purch ry only has allowable itemized deductions of $4,800, so she will e to determine her taxable income. e that her tax rates are based on Table 3.5. at is Mary's federal tax liability? Enter your answer as a positive at is her marginal tax rate? Do not round intermediate calculatio %
arvis is a single individual who is working on filing her tax retur e received $107,000 in salary. e received $12,500 of dividend income. e received $3,900 of interest income on Home Depot bonds. e received $22,500 from the sale of Disney stock that was purch e received $13,000 from the sale of Google stock that was purch ry only has allowable itemized deductions of $4,800, so she will e to determine her taxable income. e that her tax rates are based on Table 3.5. at is Mary's federal tax liability? Enter your answer as a positive at is her marginal tax rate? Do not round intermediate calculatio %
Chapter4: Income Exclusions
Section: Chapter Questions
Problem 70IIP: In each of the following problems, identify the tax issue(s) posed by the facts presented. Determine...
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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 $107,000 in salary.
She received $12,500 of dividend income.
She received $3,900 of interest income on Home Depot bonds.
She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,000.
She received $13,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,800.
• Mary only has allowable itemized deductions of $4,800, 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.
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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