Problem 1-7 The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7)

Ulysses and Penelope are married and file separate returns for 2017. Penelope itemizes her deductions on her return. Ulysses' adjusted gross income was $17,400, his itemized deductions were $2,250, and he is entitled to one exemption.

Table for the standard deduction

Filing Status	2017 Standard Deduction
Single	$ 6,350
Married, filing jointly	12,700
Married, filing separately	6,350
Head of household	9,350
Qualifying widow(er)	12,700

a. Calculate Ulysses' income tax liability assuming the couple does not live in a community property state.