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Exercise 3-21 (Algorithmic) (LO. 7) Simon, age 12, generates $6,080 interest income and no earned income for 2018. He incurs no investment expenses. Click here

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Exercise 3-21 (Algorithmic) (LO. 7) Simon, age 12, generates $6,080 interest income and no earned income for 2018. He incurs no investment expenses. Click here to access the 2018 tax rate schedule and 2018 Estate and Trust Tax Rate Schedule. If required, round the tax liability the nearest dollar. a. Simon's net unearned Income. b. Simon's total Federal income tax liability. of the amount over over 2018 Tax Rate Schedules Single-Schedule X Head of household-Schedule z If taxable of the If taxable Income is: But not amount income is: But not Over over- The tax is: over Over- The tax is: $ 0 $ 9,525 ....... 10% $ 0 $ 0 $ 13,600 .......... 10% 9,525 38,700 $ 952.50 +12% 9,525 13,600 51,800 $ 1,360.00 + 12% 38,700 82,500 4,453.50 + 22% 38,700 51,800 82,500 5,944.00 + 22% 82,500 157,500 14,089.50 +24% 82,500 82,500 157,500 12,698.00 +24% 157,500 200,000 32,089.50 + 32% 157,500 157,500 200,000 30,698.00 + 32% 200,000 500,000 45,689.50 + 35% 200,000 200,000 500,000 44,298.00 + 35 500,000 150,689.50 + 37% 500,000 500,000 149,298.00 + 37% Married filing jointly or Qualifying widow(er) - Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over Over over- The tax is: $ 0 $ 19,050 ..10% 50 59,525 ... 10% 19,050 77,400 $ 1,905.00 + 12% 19,050 9,525 38,700 $ 952.50 +12% 77,400 165,000 8,907.00+ 22% 77,400 38.700 82,500 4,453.50 +22% 165,000 315,000 28, 179.00 - 249 165,000 82.500 157,500 14,089.50 +24% 315,000 400,000 64,179.00 - 329 315.000 157.500 200,000 32,089.50 + 32% 400,000 600,000 91,379.00 + 35% 400,000 200,000 300.000 45,689.50 -35% 600,000 161,379.00 + 37% 600,000 300,000 80,689.50 + 37% 13,600 51,800 82,500 157,500 200,000 500,000 of the amount Over The tax is: Over Over $ 0 9,525 38,700 82.500 157,500 200,000 300,000

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