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Business, 15.10.2020 08:01 HyperZ

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: 1. She received $73,000 in salary.
2. She received $15,500 of dividend income.
3. She received $7,500 of interest income on Home Depot bonds.
4. She received $22,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $7,000.
5. She received $8,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,600.
6. Mary receives one exemption ($4,000), and she has allowable itemized deductions of $7,500.

These amounts will be deducted from her gross income to determine her taxable income.

Required:
a. What is Mary's federal tax liability?
b. What is her marginal tax rate?
c. What is her average tax rate?

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Answers: 3

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