Question

Excel Online Structured Activity: Personal taxes Mary Jarvis iš a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: . She received $73,000 in salary. .She received $16,500 of dividend income. .She received $4,400 of interest income on Home Depot bonds. .She received $23,000 from the sale of Disney stock that was purchased 2 years prior the sale at a cost of $5,300. .She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at .Mary receives one exemption ($4,000), and she has allowable itemized deductions cost of $5,200. f $7.500. These amounts will be deducted from her gross income 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 beiow. Open the spreadsheet and perform the required analysis to answer the questions belor Open spreadsheet a. What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations. b. What is her marginal tax rate? Round your ansvwer to 1 decimal place. What is her average tax rate? Round your answer to 2 decimal places. 96 Check My Waork Resel Problem D Salary $73,000.00 Tax Table for Single Individuals: Percentage on Excess over Base Amount Paid on Base $000 $922.50 Dividend Income Interest Income LT Stock Sale LT Stock Cost ST Stock Sale ST Stock Cost $16,500.00 $4,400.00 $23,000.00 $5,300.00 $14,000 00 $5,200.00 $4,000.00 $7,500.00 15.00% Taxable Income $0.00 10.00% 15.00% 25.00% 28.00% 33.00% $9 225.00 $37,450.00 $5,156.25 $18,481 25 $46,075.25 $90,750.00 $189,750.00 0 Personal Exemption Itemized Deductions Aplicable Tax Rate on Dividends & LT Capital Gains $411,500.00 $119401.25 $413,200.00 $119,996 25 35.00% 39.60% 11 12 13 a. Calculation of Federal Tax Liability Calculation of Taxable Income Salary 14 15 Formulas #NA 16 Sheet1 Saved to Cengage a. Calculation of Federal Tax Liability Calculation of Taxable Income: Formulas # NA # N/A 16 Salary Interest Income ST Capital Gains Income before Exemption and Deductions 20 Personal Exemption Itemized Deductions Taxable Income before Dividends & LT Capital Gains #NA # N/A #N/A #N/A #N/A 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 #NA #N/A #N/A Taxes on Dividends & LT Capital Gains: 30 Dividend Income #N/A 113O7898N 238 D E 30 Dividend Income #NA 31 LT Capital Gains Income #N/A #NA Total Dividend & LT Capital Gains Income 32 33 Tax on Dividends & LT Capital Gains Income #NA 34 Total Federal Tax Liability 36 37 b. Calculation of Marginal Tax Rate 38 Marginal Tax Rate 35 #N/A #NA 39 c. Calculation of Average Tax Rate Average Tax Rate 42 40 41 ##N /A 43 44 9 00 Formatting as Table Clear Filter Select Number Tables Cells Editing D G H Tax Table for Single Individuals: Percentage on Excess over Base Amount Paid on Base Taxable Income $0.00 $9,225.00 $37,450.00 $90,750.00 $189,750.00 $411,500.00 $413,200.00 $0.00 $922.50 10.00% 15.00% $5,156.25 $18,481.25 $46,075.2 $119,401.25 $119,996.25 25.00% 28.00% % 35.00% 39.60% Formulac Help Im 8:29

Answer 1

A 1 2 Salary 3 Interest Income 4 Short term capital gain Google 5 Income Before Exemption and Deduction 6 Less: Personal Exemption 7 Less: Itemized Deductions 8 Taxable Income Before Dividends & LT Capital Gains 73,000.00 4,400.00 8,800.00 (14000-5200) $ 86,200.00 4,000.00 $ 7,500.00 74,700.00 9 10 Taxes on Taxable Income Before Dividends & LT Capital Gains 5,156.25 37450*0.25 10,430.00 (74700-37450)*0.28 11 Tax Liability on Base of Bracket 12 Tax Liability on Excess over Base Taxes on Taxable Income Before Dividends & LT Capital Gains 15,586.25 13 14 15 Taxes on Dividend & LT Capital Gain 16 Dividend Income 17 LT Capital Gain 18 Total of Dividend & LT Capital Gain Taxes on Dividend & LT Capital Gain $ 16,500.00 17,700.00 23000 -5300 34,200.00 5,130.00 34200* 0.15 19 20 21 Total Federal Tax Liability 20,716.25 22 23 Marginal tax rate 28.00% 24 19.02% 20716.25/(74700+34200) 25 Average Tax Rate 26 7