Jeremy earned $70,000 in salary and $8,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $11,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.)

a. Use the 2017 tax rate schedules to determine Jeremys taxes due.

	Description		Amount
(1)	Gross income		0
(2)	For AGI deductions		0
(3)	Adjusted gross income		0
(4)	Standard deduction		0
(5)	Itemized deductions		0
(6)	Greater of standard deductions or itemized deductions		0
(7)	Personal and dependency exemptions		0
(8)	Taxable income
	Income tax liability

Assume that in addition to the original facts, Jeremy has a long-term capital gain of $3,000. What is Jeremys tax liability including the tax on the capital gain?

	Description		Amount
(1)	Gross income
(2)	For AGI deductions
(3)	Adjusted gross income		$0
(4)	Standard deduction
(5)	Itemized deductions
(6)
(7)	Personal and dependency exemptions
(8)	Taxable income		$0
	Income tax liability

c. Assume the original facts except that Jeremy had only $7,000 in itemized deductions. What is Jeremys total income tax liability?

DescriptionAmount(1)Gross income(2)For AGI deductions(3)Adjusted gross income$0(4)Standard deduction(5)Itemized deductions(6)(7)Personal and dependency exemptions(8)Taxable income$0Income tax liability