CR eBook Chapter 3 Financial Planning Exercise 4 Effect of tax credit versus tax exemption Explain and calculate the differences resulting from a s500 tax credit versus a $500 tax deduction for a single taxpayer with $55,000 of pre-tax income. The standard deduction in 2018 was $12,000 for single. Note that personal exemptions were suspended for 2018. Use Exhibit 2.2 to determine the corresponding tax rate. Round the answers to the nearest cent. After tax Income Tax Deduction) After tax Income Tax Credit) 2018 Tax Rate Schedules Single Taxable income Tax Rate SD-59,525 10% of taxable income $9,526-$38.700 $38,701582.500 $952.50 plus 12% of the amount over $9,525 $4,453.50 plus 22% of the amount over $38.700 $14.089.50 plus 24% of the amount over $82,500 $32,089.50 plus 32% of the amount over $157,500 $82,501-5157,500 $157,501-5200,000 $200,001-5500,000 $45,589,50 plus 35" of the amount over $200,000 $500,000 or more $150.089.50 plus 37% of the amount over $500.000