$******$

Scenario $9$:

Statement: Sophia retired at age $48$ and took a $$55,000$ distribution from her Traditional IRA.

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

Interest and Dividend Income: $$1,500$

Itemized Deductions: $$11,000$

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$)$