Problem 3-36 (LO. 1, 2, 3, 4, 5, 6) Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children, who live with her. Charlotte also maintains the household in which her parents live, and she furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte's father received $2,400 from a part-time job. Charlotte earns an $80,000 salary, a short-term capital loss of $2,000, and a cash prize of $4,000 at a church raffle. Charlotte reports itemized deductions of $10,500. Click here to access the standard deduction table to use, if required. a. Compute Charlotte's taxable income. b. Using the Tax Rate Schedules (click here), tax liability for Charlotte is $ for 2018. c. Compute Charlotte's child and dependent tax credit. Basic Standard Deduction Amounts Exhibit 3.4 Filing Status 2018 2017 Single $12,000 6,350 Married, filing jointly 24,000 12,700 Surviving spouse 24,000 12,700 Head of household 9,350 18,000 Married, filing separately 6,350 12,000 2018 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable If taxable of the of the But not income is: But not income is: amount amount Over The tax is: Over The tax is: over- over Over over 0 $9,525 .......10% $13,600 0 0 $ .....10% 38,700 $ $1,360.0012% 9,525 952.50+12% 9,525 13,600 51,800 13,600 38,700 82,500 82,500 4,453.50 22% 38,700 51,800 5,944.00 22% 51,800 157,500 82,500 157,500 14,089.50 249% 82,500 82,500 12,698.00 24% 82,500 200,000 157,500 157,500 157,500 200,000 32,089.5032% 30,698.00 32% 157,500 + 200,000 200,000 500,000 45,689.50 35% 200,000 500,000 44,298.00 35% 200,000 150,689.50 37% 500,000 500,000 500,000 149,298.0037% 500,000 Married filing jointly or Qualifying widow (er) Schedule Y-1 Married filing separately-Schedule Y-2 If taxable of the If taxable of the But not income is: But not income is: ount amount Over The tax is: Over The tax is over- over over- over- $ 19,050 ....1 0% $9,525 $ ....10% $ 0 0 0 $ 952.50 12% 77,400 19,050 1,905.0012% 19,050 9,525 38,700 9,525 77,400 165,000 8,907.00 22% 77,400 38,700 82,500 4,453.5022% 38,700 165,000 157,500 165,000 315,000 28,179.00 24% 82,500 14,089.5024% 82,500 64,179.00 32% 200,000 315,000 400,000 315,000 157,500 32,089.5032% 157,500 400,000 600,000 91,379.00 35% 400,000 200,000 300,000 45,689.5035% 200,000 600,000 161,379.0037% 600,000 300,000 80,689.5037% 300,000