$****$

Scenario $1$:

Statement: Jennifer retired at age $55$ and took a $$70,000$ distribution from her Traditional IRA.

Wages: $$20,000($part$-$time work$)$

Interest and Dividend Income: $$1,500$

Itemized Deductions: $$17,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The portion of the distribution subject to the $10\%$ early withdrawal penalty.

AGI, Taxable Income, and Total Tax Liability $($including the penalty$)$