1 answer

Mary Jarvis is a single individual who is working on filing her tax return for the...

Question:

Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the follo

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 $88,000 in salary. She received $11,000 of dividend income. She received $6,900 of interest income on Home Depot bonds. She received $23,000 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,000. She received $10,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $5,200. • Mary receives one exemption ($4,050), 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 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

Solution:
Taxable income of Mary Jarvis
Salary $88,000
Dividend income $11,000
Interest Income $6,900
Gain from Disney stock ($23,000 - $6,000) $17,000
Gain from sale of Google stock ($10,500 - $5,200) $5,300
Less: exemptions and allowable deductions
Exemptions ($4,050)
Itemized deductions ($7,500)
Total Taxable income $116,650
a. Federal tax liability
                      = $18,481.25 + ($116,650 - $90,750) * 28%
                      = $25,733.25
b. Mary is single taxpayer covered under tax bracket
$18,481.25 + ($90,750 - $189,750 )* 28%
So marginal tax rate is 28%
c. Average Tax rate
= $25,733.25/$116,650 *100
= 22.06%
Please upvote , if found the answer useful.
For any clarification, Feel free to reach at comment Section
.

Similar Solved Questions

1 answer
Im having trouble doing this problem with matlab code and we can not use ode45 in...
im having trouble doing this problem with matlab code and we can not use ode45 in our code unfortunitely. thank you! T L =undeformed length k =stiffness om The mass m is suspended from an elastic cord with an extensional stiffness k and undeformed length L. If the mass is released from rest at ...
1 answer
Quality Control: A battery company advertises that Its batterles last 245 hours. There have been ...
Quality Control: A battery company advertises that Its batterles last 245 hours. There have been several complaints that the batterles don't last that long, so an Independent analytics agency is hlred to test them. For the 37 hatteries they tested, the mean lifetime was 244 hours with a standard...
1 answer
If the two ports presented in the figure have the values of the parameters y11 =...
If the two ports presented in the figure have the values of the parameters y11 = 10, y21 = 50 and y22 = 20, all in mS, determinat V1 and V2 when VS = 100V, Rs = 25Ω, and RL = 100Ω RE + + V TWO-Ports V2 RL...
1 answer
Learning Outcomes: Explain the forces driving and evaluate the impact of globalization (CLO: 1.3) Analyze the...
Learning Outcomes: Explain the forces driving and evaluate the impact of globalization (CLO: 1.3) Analyze the effects of culture, politics and economic systems in the context of international business (CLO: 1.9, 2.1) Carry out effective self-evaluation through discussing economic systems in the int...
1 answer
2a) Suppose Henley has 320 hours available each month to devote to either labor or leisure....
2a) Suppose Henley has 320 hours available each month to devote to either labor or leisure. Furthermore, suppose Henley has no nonlabor income and she can earn a wage of $35 per hour. Construct a diagram illustrating Henley's budget constraint (be sure to properly label each axis, identify any i...
1 answer
14. The following project is at the end of its sixth week. Find the cost and...
14. The following project is at the end of its sixth week. Find the cost and schedule variances. Also find the CPI. SPI ETC, and EAC for the project. Duration Budget, Actual Cost, $ 400 180 decessors (weeks) Complete 100 100 100 20 20 250 600 400 200...
1 answer
6. A useful macroeconomic model A. is extremely realistic B. is simple C. never generates testable...
6. A useful macroeconomic model A. is extremely realistic B. is simple C. never generates testable hypotheses D. provides many intricate details 7. Current macroeconomic models use microeconomic principles because A. they use the same language for all economists B. they highlight the sociological as...
1 answer
Question 1. Portfolio Analysis (2 points) a) Assume the following about assets A and B: E[64]...
Question 1. Portfolio Analysis (2 points) a) Assume the following about assets A and B: E[64] = 0.1, 02 = 0.09. E[ro] = 0.08, 0% = 0.04. Which one has lower absolute risk and which one has lower relative risk? (1) (2): b) Find the mean return, E[ro], and variance. 07. of a portfolio consisting of 70...
1 answer
9) __ Solve the inequality. Write the solution set in interval notation. 9) - 82 +...
9) __ Solve the inequality. Write the solution set in interval notation. 9) - 82 + 6x + 16<0 A) (-0,-8) U (2,0) B) (-0,0) (-2, 8) (8,00) D) (-0,-2)(8.)...
1 answer
Harry is standing 2 m in front of a flat mirror. How far behind the mirror is his image and what is the magnification of the image?
Harry is standing 2 m in front of a flat mirror. How far behind the mirror is his image and what is the magnification of the image?...
3 answers
77 is what percent of 192?
77 is what percent of 192?...
1 answer
PYTHON 3 PROGRAM PLEASE 18.19* (Prime number iterator) Write an iterator class for prime numbers. Invoking...
PYTHON 3 PROGRAM PLEASE 18.19* (Prime number iterator) Write an iterator class for prime numbers. Invoking the __next__() method returns the next prime number. Write a test program that displays all prime numbers less than 10000....
1 answer
Suppose that the investment curve is / = 100 – 5r, and the marginal propensity to...
Suppose that the investment curve is / = 100 – 5r, and the marginal propensity to consume is 0.75. If the interest rate falls from 4 percent to 3 percent, then the rise in Y required to maintain equilibrium in the goods market is: O 0 0 5. 20. 80...
1 answer
A 500-kg block is placed on highest end of a 50° ramp that is 50-m long...
A 500-kg block is placed on highest end of a 50° ramp that is 50-m long and it immediately starts to slide down hill. Identify all the forces acting on the block and then determine total amount of work done on the block if it travels all way to the bottom of the ramp. The static and kinetic coef...
1 answer
To be profitable, a firm has recover its costs. These costs include both its fixed and...
To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider t...
1 answer
1. Which of the following statements is least likely to be correct? A. Banks have high liquidity needs to meet depositor...
1. Which of the following statements is least likely to be correct? A. Banks have high liquidity needs to meet depositors' withdrawals. B. Foundations and endowments typically have long investment horizons and high-risk tolerance. C. Defined benefit pension plans typically have short time horizo...
1 answer
Exercise 3: Urine Analysis Water (500 ml water) 60min 120min 60 120 Omin 0 omin Water...
Exercise 3: Urine Analysis Water (500 ml water) 60min 120min 60 120 Omin 0 omin Water (1000 ml water) 60min 120min 180 480 Volume (ml) 0 1 = 60/60 2 = 120/60 3 = 180/60 8 = 480/60 Urine production rate (ml/min) Specific Gravity (SG) 1.03 1.03 1.02 1.03 1.02 1.01 Data P. 1 Questions 1. Make line grap...
1 answer
Problem 4.32 5 of 11 Review I Constants I Periodic Table Draw the vectors starting at...
Problem 4.32 5 of 11 Review I Constants I Periodic Table Draw the vectors starting at the black dot. The location and orientation of the vectors will be graded. The length of the vectors will not be graded. A person is leaning against a wall as shown in (Figure 1). No elements selected Twall Figure ...