Sandy is a single and has the following situation for the year: Sandy's income of $80,000;...

90.2K

Verified Solution

Question

Finance

Sandy is a single and has the following situation for the year:Sandy's income of $80,000; dividend income of $20,000; interestincome of $2,000; short-term capital gain of $8,000 and long-termcapital gain of 14,000. She also paid $1,000 on interest charges onher credit card. Her other total exemptions and itemized deductionsis 22,000; these amounts will be deducted from her gross income todetermine her taxable income. If she is files as a singleindividual, what is Sandy's marginal tax rate? Use the individualtax rate provided below. Individual Tax Rates: Single IndividualTaxable Income You Pay This Amount on the Base of the Bracket PlusThis Percentage on the Excess over the Base (Marginal Rate) AverageTax Rate at the Top of Bracket Up to $8925 $0 10.0% 10.0%$8925-36350 $892.50 15.0 13.8 $36250-87850 $4991.25 25.0 20.4$87850-183250 $17891.25 28.0 24.3 183250-398350 $44603.25 33.0 29.0$398350-400000 $115586.25 35.0 29.0 Over $400000 $116163.75 39.639.6 A. 10.0% B. 20.0% C. 25.0% D. 28.0% E. None of the above

Answer & Explanation Solved by verified expert

3.7 Ratings (345 Votes)

SOLUTION D 28 Type of Tax payer Single Individual As in the given details we have Incomes and deductions for calculation of taxable income Taxable income is gross income as adjusted minus deductions Taxable income is taxed at the given Marginal Tax See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member