1 answer

Need part c . She received $139,000 in salary • She received $14,000 of dividend income....

Question:

. She received $139,000 in salary • She received $14,000 of dividend income. • She received $3,500 of interest income on Home

need part c

Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9.225 59.225-537.450 $37,450-590,750

. She received $139,000 in salary • She received $14,000 of dividend income. • She received $3,500 of interest income on Home Depot bonds. She received $21,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $6,900 • She received $12,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,600. • 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. Assume that her tax rates are based on Table 3.5. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Х Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. $ 162,000.00 b. What is her marginal tax rate? Round your answer to 1 decimal place. 32.00 % c. What is her average tax rate? Round your answer to 2 decimal places. %
Table 3.5 2015 Individual Tax Rates Single Individuals If Your Taxable Income Is Up to $9.225 59.225-537.450 $37,450-590,750 $90,750-$189.750 S189,750-S411.500 S411,500-S5413,200 Over $413,200 You Pay This Amount on the Base of the Bracket $ 0 922 50 5.156.25 18,481.25 46,075.25 119.401 25 119.996.25 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28,0 33.0 35.0 39.6 Average Tax Rate at Top of Bracket 10.0% 13.8 20.4 24.3 29.0 29,0 39.6 Married couples Filing Joint Returns IrYour Taxable Income Is Up to $18,450 $18.450-574.900 $74.900-S151,200 S151,200-5230.450 S230 450-$411,500 $411,500-5464.850 Over $464,850 You Pay This Amount on the Base of the Bracket S 0 1,845.00 10,312.50 29,387.50 51,577.50 111,324.00 129.996,50 Plus This Percentage on the Excess over the Base (Marginal Rate) 10.0% 15.0 25.0 28.0 33.0 350 19.6 Average Tax Rate at Top of Bracket 10.0% 13.8 19.4 22.4 27.1 28.0 39.6

Answers

Income from Salary $        139,000.00
Dividend Income $          14,000.00
Interest Income Home Depot Bonds $            3,500.00
Short term captial gain from sale of shares disney $            4,400.00
Long term captial gain from sale of shares google $          14,600.00
Gross Taxable Income $        175,500.00
Less Exemption $            4,000.00
Less Deduction $            7,500.00
Net Taxable Income $        164,000.00
Long Term Capital Gain tax @ 15 % $            2,190.00
Taxable Income excludind LTCG $        149,400.00
Tax as per federal rates and table on 149400 $          34,903.00
Total Tax Liablty ( 34903+2190) $          37,093.00
Marginal Tax Rate 28.00%
Average tax Rate 21.14%
.

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