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 $95,000 in salary.
- She received $16,000 of dividend income.
- She received $5,200 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 $5,300.
- She received $14,000 from the sale of Google stock that was purchased 6 months prior to the sale at a cost of $4,000.
- 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. https://cxp-cdn.cengage.info/protected/prod/assets/9c/6/9c6407fe-8b69-4f63-b412-deda2a5d1d9e.JPG?__gda__=st=1676283145~exp=1676887945~acl=%2fprotected%2fprod%2fassets%2f9c%2f6%2f9c6407fe-8b69-4f63-b412-deda2a5d1d9e.JPG*~hmac=3543ae73b924aee11f85e9d5ba160eef959bdb8f09815e0d4ff1f59b2d098f22
a) What is Mary’s federal tax liability?
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