$*****$

Scenario $8$:

Statement: Christopher retired at age $56$ and took a $$75,000$ distribution from his Traditional IRA.

Wages: $$28,000($part$-$time work$)$

Interest and Dividend Income: $$2,000$

Itemized Deductions: $$15,000$

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$)$