(a) Modify the Millers’ Tax Computation program in Figure 1.2 to include the next higher tax bracket: 28% for earnings between $153,101 and $233,350.

(b) Suppose that Sue’s estimated income is now $120,000, and Rob’s is $80,200. What will be their new estimated tax per quarter?

Figure 1.2

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A B DE 1 Millers' Tax Computation This box shows all the known 3 Known Parameters 4 Retirement Savings % 5 Maximum savings 6 Personal exemption 7 Standard deduction 8 Tax rates input parameter values. 0.07 8000 4050 per person 12700 0.1 1 to 18650 9 0.15 18651 to 75900 10 0.25 75901 to 153100 11 12 Variables 13 Sue's estimated income 14 Rob's estimated income 15 16 Tax Computation 17 Total income 18 Retirement savings 19 Personal exemptions 20 Standard deduction 21 Taxable income 22 Tax @ 10% rate 23 Tax @ 15% rate 24 Tax @ 25% rate 25 Total tax 26 Estimated tax per quarter =B25/4 This box shows the two input variables. =B13+B14 =MIN(B4'B17,85) =2*B6 Minimun of (7% of total income $8,000) =B7 Maximum of (0, taxable income) =MAX(0.B17-SUM(B18:B20)) =B8*MIN(B21,E8) =IF(621>E8,89"(MIN(B21,E9)-E8).0) =IF(B21>E9,B10"(MIN(B21.E10)-E9),0) =SUM(B22:B24) 10% tax up to $18,650 15% tax between $18,651 and $75,900. This tax is calculated only if taxable income exceeds $18,650. 25% tax between $75,901 and $153,100. This tax is calculated only if taxable income exceeds $75,900.