Mary is a single taxi filler with three dependent children. This year which mean 2019 she earned 50,000 from the sale of labour service, 23000$ in interest from certificates of deposits, which represents funds loaned to a bank, 15000$ dividend, 20000$ rent income from her apartment, 25000$ from non-corporate business. In adidition, she was unemployed for one month during the year, so she received 3200$ in unemployment insurance payments from the governments. Mary also won 21000$ award as best American business woman in ohio from SABBA. She also received alimony 3000$. Mary sold one of her house 80000$ which was originally purchased 28000$ these years, and the inflation rate is 8% this year. Mescellenous cost for employees and business 8000$, miscellenous education expense for her children $7000, gifts received from her family 18000$. Exemption bond interest 14000$. Using 2019 American taxi bracket. Calculate her taxable income, taxable liability and average and effective taxi rate

Answer rating: 100% (QA)

To calculate Marys taxable income we need to add up all her income and subtract any deductions or ex... View the full answer