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
