Linette, a single taxpayer, had the following income and deductions for the tax year 2018 INCOME Salary $95,000 Business Income 28,000 Interest income from taxable bonds 5,000 Tax exempt bond interest 3,500 TOTAL INCOME 131,500 DEDUCTIONS Business expenses $7,000 Itemized deductions 15,000 TOTAL DEDUCTIONS 22,000 Filing Status Married individuals filing joint returns and surviving spouses $24,000 Heads of households $18,000 Unmarried individuals (other than surviving spouses and heads of households) $12,000 Married individuals filing separate returns $12,000 Additional standard deduction for the aged and the blind Individual who is married and surviving spouses $1,300 Additional standard deduction for the aged and the blind Individual who is unmarried and not a surviving spouse $1,600 Taxpayer claimed as dependent on another taxpayer return Greater of (1) earned income plus $350 or (2) $1,050 These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind If taxable income is The tax is Not over $9,525 10 of taxable income Over $9,525 but not over $38,700 $952 50 12 of the excess over $9,525 Over $38,700 but not over $82,500 $4,453 50 22 of the excess over $38,700 Over $82,500 but not over $157,500 $14,089 50 24 of the excess over $82,500 Over $157,500 but not over $200,000 $32,089 50 32 of the excess over $157,500 Over $200,000 but not over $500,000 $45,689 50 35 of the excess over $200,000 Over $500,000 $150,689 50 37 of the excess over $500,000 Requirement a Compute Linette's taxable income and federal tax liability for 2018 First calculate the gross income, then calculate taxable income and the federal tax liability (Calculate the tax using the tax rate schedule Do not round interim tax calculations Round the amount entered into the cell to the nearest whole dollar If an input field is not used in the table, leave the input field empty do not select a label or enter a zero ) Total income from whatever source derived Minus Exclusions, as provided in the tax law Gross income

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Linette, a single taxpayer, had the following income and deductions for the tax year 2018 INCOME: Salary $95,000 Business Income 28,000 Interest income from taxable

Linette, a single taxpayer, had the following income and deductions for the tax year 2018

INCOME:	Salary	$95,000
	Business Income	28,000
	Interest income from taxable bonds	5,000
	Tax-exempt bond interest	3,500
	TOTAL INCOME	131,500

DEDUCTIONS:	Business expenses	$7,000
	Itemized deductions	15,000
	TOTAL DEDUCTIONS	22,000

Filing Status
Married individuals filing joint returns and surviving spouses	$24,000
Heads of households	$18,000
Unmarried individuals (other than surviving spouses and heads of households)	$12,000
Married individuals filing separate returns	$12,000
Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses	$1,300*	*
Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse	$1,600*	*
Taxpayer claimed as dependent on another taxpayer return: Greater of (1) earned income plus $350 or (2) $1,050.
* These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind.

If taxable income is:	The tax is:
Not over $9,525	10% of taxable income.
Over $9,525 but not over $38,700	$952.50 + 12% of the excess over $9,525.
Over $38,700 but not over $82,500	$4,453.50 + 22% of the excess over $38,700.
Over $82,500 but not over $157,500	$14,089.50 + 24% of the excess over $82,500.
Over $157,500 but not over $200,000	$32,089.50 + 32% of the excess over $157,500.
Over $200,000 but not over $500,000	$45,689.50 + 35% of the excess over $200,000.
Over $500,000	$150,689.50 + 37% of the excess over $500,000.

Requirement a. Compute Linette's taxable income and federal tax liability for 2018.

First calculate the gross income, then calculate taxable income and the federal tax liability. (Calculate the tax using the tax rate schedule. Do not round interim tax calculations. Round the amount entered into the cell to the nearest whole dollar. If an input field is not used in the table, leave the input field empty; do not select a label or enter a zero.)