Latesha, a single taxpayer, had the following income and deductions for the tax year 2013:

a. Compute Latesha's taxable income and federal tax liability for 2013.
b. Compute Latesha's marginal, average, and effective tax rates.
c. For tax planning purposes, which of the three rates in Part b is the most important?

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Salary Business Income Interest income from bonds Tax-exempt bond interest $ 60,000 25,000 10,000 5,000 100,000 INCOME: TOTAL INCOME 9,500 20,000 3,900 33,400 DEDUCTIONS Business expenses Itemized deductions Personal exemption TOTAL DEDUCTIONS