Question
Mary Jarvis is a single individual who is working on filing her tax return for the...
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 $101,000 in salary.
-She received $18,000 of dividend income.
-She received $6,100 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 $10,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,500.
-Mary only has allowable itemized deductions of $5,500, 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.
-
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.
%
Table 3.5 2018 Individual Tax Rates Single Individuals If Your Taxable Income is Up to $9,525 $9,525 - $38,700 $38,700 - $82,500 $82,500 - $157,500 $157,500 - $200,000 $200,000 - $500,000 Over $500,000 You Pay This Amount Plus This Percentage on Average Tax on the Base of the the Excess over the Base Rate at Top of Bracket (Marginal Rate) Bracket $0.00 10.0% 10.0% 952.50 12.0% 11.5% 4,453.50 22.0% 17.1% 14,089.50 24.0% 20.4% 32,089.50 32.0% 22.8% 45,689.50 35.0% 30.1% 150,689.50 37.0% 37.0% Married couples Filing Joint Returns If Your Taxable Income Is Up to $19,050 $19,050 - $77,400 $77,400 - $165,000 $165,000 - $315,000 $315,000 - $400,000 $400,000 - $600,000 Over $600,000 You Pay This Amount Plus This Percentage on Average Tax on the Base of the the Excess over the Base Rate at Top of Bracket (Marginal Rate) Bracket $0.00 10.0% 10.0% 1,905.00 12.0% 11.5% 8,907.00 22.0% 17.1% 28,179.00 24.0% 20.4% 64,179.00 32.0% 22.8% 91,379.00 35.0% 26.9% 161,379.00 37.0% 37.0%
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 $101,000 in salary. • She received $18,000 of dividend income. • She received $6,100 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 $10,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,500. • Mary only has allowable itemized deductions of $5,500, 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.
Answers
Computation of total taxable income of Mary Jarvis S.no Particulars Amount $ Amount $ A Salary Income 101000 B Dividend Income 18000 C Interest income on Home depot bonds 6100 D Capital Gains from sale of disney Stock Sale value less Cost = (22,500-9,000) 13500 E Capital Gains from sale of google Stock Sale value less Cost = (10,500-5,500) 5000 F Gross total income(A+B+C+D+E) 143600 G Less: standard Deduction -12000 H Net taxable income( F-G) 131600 Since mary is single individual and her taxable income is $131600 she falls under 4Th bracket where she has to pay $14,089.50 on base of bracket($82,500) and 24% on excess over base which amounts to $11,784 ( 131600- base of 82500)* 24%
A) Mary's federal Tax laibility would be $25873.5.
B) Marginal tax rate would be 24%
C) Average Tax rate would be 19.66 % ( $25873.5/ 131600= 19.66%)
Similar Solved Questions
1 answers
In a basketball free-throw shooting contest, the points made by Sam and Wilbur were in the ratio 7:9
In a basketball free-throw shooting contest, the points made by Sam and Wilbur were in the ratio 7:9. Wilbur made 6 more points than Sam. find the number of points made by each....
1 answers
A study is being conducted to determine whether a particular exercise program is effective at reducing...
A study is being conducted to determine whether a particular exercise program is effective at reducing the mean blood cholesterol level on males between the ages of 35 and 50. Six subjects participated in the program, and their cholesterol levels before and after the program are as follows. Blood Ch...
1 answers
Intro Merk has 610 million shares oustanding that currently trade at $445. IB Attempt 1/5 for...
Intro Merk has 610 million shares oustanding that currently trade at $445. IB Attempt 1/5 for 10 pts. Part 1 If Merk pays a 80% stock dividend, what will be the new share price? No decimals Submit...
1 answers
20.000 7. DETAILS LARLINALG8 2.6.012 An industrial system has two industries with the following input requirements....
20.000 7. DETAILS LARLINALG8 2.6.012 An industrial system has two industries with the following input requirements. (a) To produce $1.00 worth of output. Industry A requires $0.20 of its own product and 50:40 of Industry B's product. (b) To produce $1.00 worth of output, Industry requires $0.40 ...
1 answers
Paints by Lucy prepares and packages paint products. The company has two departments: (1) Blending and...
Paints by Lucy prepares and packages paint products. The company has two departments: (1) Blending and (2) Packaging. Direct materials are added at the beginning of the blending process (dyes) and at the end of the packaging process (cans). Conversion costs are added evenly throughout each process. ...
1 answers
A pension fund manager is considering three mutual funds. The first is a stock fund, the...
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.3%. The probability distributions of the risky funds are: Stock fund (S) Bond fu...
1 answers
1. Ingredients 3. Serving size 4. Servings/container 5. Calories/serving 6. Calories from fat 7. &
1. Ingredients 3. Serving size 4. Servings/container 5. Calories/serving 6. Calories from fat 7. % of total kcal from fat 8.&...
1 answers
Work on a fixture in an ascending elevator You are trying to move a light fixture...
Work on a fixture in an ascending elevator You are trying to move a light fixture into an apartment. There are hooks in the elevator so you hang the fixture on a hook with a chain. You don't want the fixture to touch the walls, so you attach a rope to the side and are pulling horizontally as sho...
1 answers
Consider a building 160 m high and 80 m wide. The velocity profile of the wind...
Consider a building 160 m high and 80 m wide. The velocity profile of the wind speed is linear with the maximum velocity at the top 40 m/s. The minimum velocity at the bottom can be considered to be zero. Find the drag on the building if the drag coefficient is 1.3. 5....
1 answers
Charge is placed on two conducting spheres that are very far apart and connected by a...
Charge is placed on two conducting spheres that are very far apart and connected by a long thin wire. The radius of the smaller sphere is 5 cm and that of the larger sphere is 12 cm. The electric field at the surface of the larger sphere is 810 kV/m. Find the surface charge density on each sphere....
1 answers
Fraction of tails Now let's look at the fraction of tails in n trials. Fraction of...
Fraction of tails Now let's look at the fraction of tails in n trials. Fraction of tails in a small number of coin flips Heads) Suppose we flip 10 coins and compute the fraction of tails (with 1 = Tails and 0 = = 10 trials = 6 for (i in 1: trials) { print (sum(sample(c(0, 1), n, replace-TRUE)) /...
1 answers
Question from fundamentals of photonics saleh. Comparison of Stimulated and Spontaneous Emission. An atom with two...
question from fundamentals of photonics saleh. Comparison of Stimulated and Spontaneous Emission. An atom with two energy levels corresponding to the transition (lambda_0 = 0.7 mu m, t_sp = 3 ms, delta v = 50 GHz, Lorentzian lineshape) is placed in a resonator of volume V = 100 cm^3 and refractive ...
1 answers
Indicate which direction the reaction Ishown below would shift in response to the change described &...
Indicate which direction the reaction Ishown below would shift in response to the change described & why? Ha(g) + CO2(gl H2O(g) + Coigo АН ran +9.9kcal a.) addition of CO2 b.) addition of H2O ci) addition of a catalyst d.) Increase in temperature eil decrease in volume of the contain...
1 answers
> summary(bachelors) Min. 1st Qu. Median Mean 3rd Qu. Max. 4.640 5.231 5.395 5.434 5.637 6.040...
> summary(bachelors) Min. 1st Qu. Median Mean 3rd Qu. Max. 4.640 5.231 5.395 5.434 5.637 6.040 How to comment on mean and sd of the randomly generated data? Cut and paste into Word... Your Problem IV: Generating and Displaying Continuous data: rnorm( n, μ,0) In 2014 a large study of 435 colleg...
1 answers
Which of the following transactions is an example of indirect financing? Alibaba’s IPO conducted by the...
Which of the following transactions is an example of indirect financing? Alibaba’s IPO conducted by the major investment banks Woolworth takes a 3-month loan from Westpac to purchase inventory Mary lent $20,000 to her friend to buy a new house None of the above...
1 answers
An organization that studies the use of the Internet in America surveyed 802 pairs of parents...
An organization that studies the use of the Internet in America surveyed 802 pairs of parents and teens (aged 12–17)using in-person interviews. Using the teens' responses, they report that 89% of teens have access to a computer. 32 of teens access the Internet p...