please show the excel formulas. thank you 
1 Spreadsheet Exercise: Problem 1.2 2 During 2018, the Smiths and the Joneses both filed joint tax returns. For the tax year ended December 31, 2018, the Smiths taxable income was $130,000, and the Joneses had total taxable income of $65,000. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. 3 4 6 Tax Rates un 009 10% 12% 22% 24% 32% 35% 37% Taxable Income Individual Returns Joint Returns From: To: From: To: $0 $9,525 $0 $19,050 $9,526 $38,700 $19,051 $77,400 $38,701 $82,500 $77,401 $165,000 $82,501 $157,500 $165,001 $315,000 $157,501 $200,000 $315,001 $400,000 $200,001 $500,000 $400,001 $600,000 Over $500,000 Over $600,000 To Do Create a spreadsheet to answer the following: a. Using the federal tax rates given in the table above for married couples filing joint returns, calculate the taxes for both the Smiths and the Joneses. b. Calculate the ratio of the Smiths' to the Joneses' taxable income and the ratio of the Smiths' to the Joneses' taxes. What does this demonstrate about the federal income tax structure? 18 19 20 21 Solution 22 a. Using the federal tax rates given in the table above for married couples filing joint returns, calculate the taxes for both the Smiths and the Joneses. 23 24 25 S130,000 26 The Smiths' taxable income Tax for the Smiths The Joneses' taxable income Tax for the Joneses 27 S65,000 28 29 30 b. Calculate the ratio of the Smiths' to the Joneses' taxable income and the ratio of the Smiths' to the Joneses' taxes. 31 32 Ratio of taxable incomes Ratio of taxes 33 34 35 What does this demonstrate about the federal income tax structure? 36 37 Higher income earners pay a proportion of their income as tax. 38 39 41 42 40 Requirements 1 In cell E26, by using cell references, calculate the tax for the Smiths. 2 In cell E28, by using cell references, calculate the tax for the Joneses. 3 In cell E32, by using cell references, calculate the ratio of the Smiths' to the Joneses' taxable income. 4 In cell E33, by using cell references, calculate the ratio of the Smiths' to the Joneses' taxes. 5 In cell E37, determine how the tax changes when income increases. 6 Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed. 43 Points 1 1 1 1 1 0 44 45 46 47
