Reference no: EM132934003

Tax Table for Single Individuals:

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%

$189,750.00                              $46,075.25                                  33.00%

$411,500.00                             $119,401.25                                  35.00%

$413,200.00                                 $119,996.25                             39.60%

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 $13,000 of dividend income.
• She received $7,700 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 $6,700.
• She received $11,500 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $7,700.
• 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.

Question 1: What is Mary's federal tax liability? Round your answer to the nearest cent. Do not round intermediate calculations.

Question 2: What is her marginal tax rate? Round your answer to 1 decimal place.

Question 3: What is her average tax rate? Round your answer to 2 decimal places.