Calculate the following:

Petunia's (filing status: single and she is her only dependent) tax calculations are as followsassuming a 2018 tax year).2018 standard deduction amountis $6,500 and the exemption amount for 2018 is $4150.Petunia is single and will claim herself as an exemption. She has a house mortgage interest amount of $4,300, property taxes of $3,900, and made $4,950 in charitable contributions during the year. All these are itemized deductions. Use page236(yeah, I knowthese are the tax brackets for 2016,but use them anyway)to help you calculate her (progressive) income tax liability:

Wages, salaries, and tips$38,700

Plus: Interest income142

Grossincome$38,842

Less: Adjustments to (gross) income0

Adjusted gross income$38,842

Less: Standard deduction<>

Less: Exemption (claim one only)<_____>_

Taxable income$

Tax liability$

Less: Taxes withheld4,150.00

Tax due$ __________

1.If Petunia itemizes her deductions anduses one exemption, will sheowe additional taxes for 2018? If she has underpaid by too great an amount, she may also be subject to an underpayment penalty regardless of whether she files her return by April 15 or not. Refer to IRS Publication 505.

2.Recalculate Petunia's income tax for 2018 taxes without itemizing her deductions and using the same tax schedule.Using President Trump'snew incometaxlaw adjustmentan increase in the standard deduction and no personal exemption.(2018 Standard deduction = $12,000, Personal exemption = $0). The first $9,525 of her incomeis taxed at a10% tax rate, theamount over $9,525 is taxed at 12%). Is Petunia eligible for a refund? Which income tax calculationwill result ina lowerfederal income tax for Petunia?

Less: Adjustments to (gross) income0

Adjusted gross income$38,842

Less: Standard deduction<>

Less: Exemption (claim one only)<_____>_

Taxable income$

Tax liability$

Less: Taxes withheld4,150.00

Tax due$ __________