McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 74

In 2011, Sheryl is claimed as a dependent on her parent's tax return.Her parents' ordinary income marginal tax rate is 35%.Sheryl did not provide more than half her own support.What is Sheryl's tax liability for the year in each of the following alternative circumstances?
a.?She received $7,000 from a part-time job.This was her only source of income.She is 16 years old at year-end.b.?She received $7,000 of interest income from corporate bonds she received several years ago.This is her only source of income.She is 16 years old at year-end.c.?She received $7,000 of interest income from corporate bonds she received several years ago.This is her only source of income.She is 20 years old at year end and is a full time student.d.?She received $7,000 of qualified dividend income.This is her only source of income.She is 16 years old at year end.