Mike and Julie Bedard are a working couple. They will file a joint income tax return. This

Question:

Mike and Julie Bedard are a working couple. They will file a joint income tax return. This year, they have the following taxable income:
1. $125,000 from salary and wages (ordinary income)
2. $1,000 in interest income
3. $3,000 in income
4. $2,000 in profit from sale of a stock they purchased 2 years ago
5. $2,000 in profit from a stock they purchased this year and sold this year
Use the federal income tax rates given in Table to work this problem.
a. How much will Mike and Julie pay in federal income taxes on 2 above?
b. How much will Mike and Julie pay in federal income taxes on 3 above?
c. How much will Mike and Julie pay in federal income taxes on 4 above?
d. How much will Mike and Julie pay in federal income taxes on 5 above?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...