Question
In: Accounting
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 $99,000 in salary.
- She received $13,500 of dividend income.
- She received $4,200 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 $6,700.
- She received $14,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,700.
- 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.
What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.
What is her average tax rate? Round your answer to 2 decimal places.
| Personal taxes | ||
| Salary | $99,000.00 | |
| Dividend Income | $13,500.00 | |
| Interest Income | $4,200.00 | |
| LT Stock Sale | $23,000.00 | |
| LT Stock Cost | $6,700.00 | |
| ST Stock Sale | $14,500.00 | |
| ST Stock Cost | $4,700.00 | |
| Personal Exemption | $4,000.00 | |
| Itemized Deductions | $7,500.00 | |
| Apllicable Tax Rate on Dividends & LT Capital Gains | 15.00% | |
| a. Calculation of Federal Tax Liability | ||
| Calculation of Taxable Income: | ||
| Salary | $99,000.00 | |
| Interest Income | $4,200.00 | |
| ST Capital Gains | $9,800.00 | |
| Income before Exemption and Deductions | $113,000.00 | |
| Personal Exemption | $4,000.00 | |
| Itemized Deductions | $7,500.00 | |
| Taxable Income before Dividends & LT Capital Gains | ||
| Taxes on Taxable Income Before Dividends & LT Capital Gains: | ||
| Tax Liability on Base of Bracket | ||
| Tax Liability on Excess over Base | ||
| Tax on Taxable Income before Dividends & LT Capital Gains | ||
| Taxes on Dividends & LT Capital Gains: | ||
| Dividend Income | ||
| LT Capital Gains Income | ||
| Total Dividend & LT Capital Gains Income | ||
| Tax on Dividends & LT Capital Gains Income | ||
| Total Federal Tax Liability | ||
| b. Calculation of Marginal Tax Rate | ||
| Marginal Tax Rate | ||
| c. Calculation of Average Tax Rate | ||
| Average Tax Rate |
| Taxable Income | Amount Paid on Base | Percentage on Excess over Base |
| $0.00 | $0.00 | 10.00% |
| $9,225.00 | $922.50 | 15.00% |
| $37,450.00 | $5,156.25 | 25.00% |
| $90,750.00 | $18,481.25 | 28.00% |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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 $132,000 in salary. She received
$12,000 of dividend income. She received $4,100 of interest income
on Home Depot bonds. She received $23,500 from the sale of Disney
stock that was purchased 2 years prior to the sale at a cost of
$5,000. She received $11,500 from the sale of Google stock that was...
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 $109,000 in salary.
She received $13,500 of dividend income.
She received $4,400 of interest income on Home Depot bonds.
She received $23,500 from the sale of Disney stock that was
purchased 2 years prior to the sale at a cost of $6,000.
She received $9,000 from the sale of Google stock that was...
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 $128,000 in salary.
She received $16,000 of dividend income.
She received $8,800 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 $5,600.
She received $9,000 from the sale of Google stock that was...
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 $105,000 in salary. She received
$16,500 of dividend income. She received $6,800 of interest income
on Home Depot bonds. She received $21,000 from the sale of Disney
stock that was purchased 2 years prior to the sale at a cost of
$5,100. She received $13,500 from the sale of Google stock that was...
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 $88,000 in salary.
She received $20,000 of dividend income.
She received $6,300 of interest income on Home Depot
bonds.
She received $24,500 from the sale of Disney stock that was
purchased 2 years prior to the sale at a cost of $6,100.
She received $14,000 from the sale of Google stock that was...
PERSONAL TAXES Mary Jarvis is a single individual who is working on filing her tax return...
PERSONAL TAXES
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 $121,000 in salary.
She received $10,500 of dividend income.
She received $3,500 of interest income on Home Depot
bonds.
She received $23,500 from the sale of Disney stock that was
purchased 2 years prior to the sale at a cost of $6,300.
She received $8,000 from the sale of Google stock...
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:
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 $90,000 in salary.She received $19,000 of dividend income.She received $4,600 of interest income on Home Depot bonds.She received $23,500 from the sale of Disney stock that was purchased 2 years prior to the sale at a cost of $9,400.She received $13,000 from the sale of Google stock that was purchased 6 months prior to...
Ruth, who files as single, reported itemized deductions of $12,300 on her 2018 tax return.
Ruth, who files as single, reported itemized deductions of
$12,300 on her 2018 tax return. Her itemized deductions included
$400 of state taxes paid. In 2019, she received a $275 refund of
state taxes paid in 2018. What is the amount that Ruth needs to
report on her 2019 tax return? A) $400. B) $275. C) $300. D)
$0.
(filing status: single and she is her only dependent) tax calculations are as follows assuming a...
(filing status: single and she is her only dependent) tax
calculations are as follows assuming a 2018 tax year). 2018
standard deduction amount is $6,500 and the exemption amount for
2018 is $4150. Bella s single and will claim herself as an
exemption. She has a house mortgage interest amount of $4,300,
property taxes of $3,900, and made $4,950 in charitable
contributions during the year. All these are itemized
deductions.
Wages, salaries, and
tips
$38,700
Plus: Interest
income ...
Sarah is single. She files her tax return as Single. Her 2020 income from wages is...
Sarah is single. She files her tax return as Single. Her
2020 income from wages is $450,400. She has “net long-term capital
gains” of $100,000. Total 2020 gross income is $550,400. Sarah is
under 65 years of age and does not itemize her deductions. What is
Sarah’s total federal income tax?
A)
$112,829.75
B)
$128,095.50.
C) $147,922.50
D) $149,701
please show work thank you
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