Please explain the subparts to understand, thank you.Problem #2. Your uncle has a taxable income of $85,311 last year.(a) If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.)(b) What would be your uncle's tax liability if he were to file his taxes as married filing jointly. Example 11 Using the Tax Rate TablesElizabeth Ashcroft had taxable income last year of $121,334. For income tax purposes, shefiles as married filing separately. Use the appropriate table to calculate her tax liability.Solution StrategyStep 1We'll use the table for those with filing status “Married filing Separately."Step 2Reading down the first column, we find Elizabeth's taxable income in the range "Over $82,500 butnot over $157,500."Step 3Tax = 14,089.50+.24(121,334 – 82,500)= 14,089.50 + .24(38,834)= 14,089.50 + 9,320.16= $23,409.66Try It Exercise 11Mike Straus had taxable income of $56,500 last year. If he files as single, what is his taxliability?Answer +From the table for single filers:4,453.50 + .22(56,500 – 38,700)= 4,453.50 + .22(17,800)Таx= 4,453.50 + 3,916= $8.369.50. Exhibit 18-3Income Tax Rate TablesFiling status: SingleTaxable incomeТахAt least $0 but not over $9,52510% of the amount over $0Over $9,525 but not over $38,700$952.50 + 12% of the amount over $9,525Over $38,700 but not over $82,500$4,453.50 + 22% of the amount over $38,700Over $82,500 but not over $157,500$14,089.50 + 24% of the amount over $82,500Over $157,500 but not over $200,000$32,089.50 + 32% of the amount over $157,500Over $200,000 but not over $500,000$45,689.50 + 35% of the amount over $200,000Over $500,000$150,689.50 + 37% of the amount over $500,000Filing status: Married filing jointly or Qualifying widow(er)Taxable incomeТаxAt least $0 but not over $19,05010% of the amount over $0Over $19,050 but not over $77,400$1,905 + 12% of the amount over $19,050Over $77,400 but not over $165,000$8,907 + 22% of the amount over $77,400Over $165,000 but not over $315,000$28,179 + 24% of the amount over $165,000Over $315,000 but not over $400,00$64,179 + 32% of the amount over $315,000Over $400,00 but not over $600,000$91,379 + 35% of the amount over $400,000Over $600,000$161,379 + 37% of the amount over $600,000Filing status: Married filing separatelyTaxable incomeТахAt least $0 but not over $9,52510% of the amount over $0Over $9,525 but not over $38,700$952.50 + 12% of the amount over $9,525Over $38,700 but not over $82,500$4,453.50 + 22% of the amount over $38,700Over $82,500 but not over $157,500$14,089.50 + 24% of the amount over $82,500Over $157,500 but not over $200,000$32,089.50 + 32% of the amount over $157,500Over $200,000 but not over $300,000$45,689.50 + 35% of the amount over $200,000Over $300,000$80,689.50 + 37% of the amount over $300,000Filing status: Head of householdTaxable incomeТаxAt least $0 but not over $13,60010% of the amount over $0Over $13,600 but not over $51,800$1,360 + 12% of the amount over $13,600Over $51,800 but not over $82,500$5,944 + 22% of the amount over $51,800Over $82,500 but not over $157,500$12,698 + 24% of the amount over $82,500Over $157,500 but not over $200,000$30,698 + 32% of the amount over $157,500Over $200,000 but not over $500,000$44,298 + 35% of the amount over $200,000Over $500,000$149,298 + 37% of the amount over $500,000

Name: Please explain the subparts to understand, thank you.Problem #2. Your
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Description: Please explain the subparts to understand, thank you.Problem #2. Your uncle has a taxable income of $85,311 last year.(a) If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.)(b) Wh

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Please explain the subparts to understand, thank you.Problem #2. Your uncle has a taxable income of $85,311 last year.(a) If he files as a head of household, what is his tax liability. (Use Table 18-3 and example 11 from Chapter 18 as a guide.)(b) What would be your uncle's tax liability if he were to file his taxes as married filing jointly. Example 11 Using the Tax Rate TablesElizabeth Ashcroft had taxable income last year of $121,334. For income tax purposes, shefiles as married filing separately. Use the appropriate table to calculate her tax liability.Solution StrategyStep 1We'll use the table for those with filing status “Married filing Separately.&#34;Step 2Reading down the first column, we find Elizabeth's taxable income in the range &#34;Over $82,500 butnot over $157,500.&#34;Step 3Tax = 14,089.50+.24(121,334 – 82,500)= 14,089.50 + .24(38,834)= 14,089.50 + 9,320.16= $23,409.66Try It Exercise 11Mike Straus had taxable income of $56,500 last year. If he files as single, what is his taxliability?Answer +From the table for single filers:4,453.50 + .22(56,500 – 38,700)= 4,453.50 + .22(17,800)Таx= 4,453.50 + 3,916= $8.369.50. Exhibit 18-3Income Tax Rate TablesFiling status: SingleTaxable incomeТахAt least $0 but not over $9,52510% of the amount over $0Over $9,525 but not over $38,700$952.50 + 12% of the amount over $9,525Over $38,700 but not over $82,500$4,453.50 + 22% of the amount over $38,700Over $82,500 but not over $157,500$14,089.50 + 24% of the amount over $82,500Over $157,500 but not over $200,000$32,089.50 + 32% of the amount over $157,500Over $200,000 but not over $500,000$45,689.50 + 35% of the amount over $200,000Over $500,000$150,689.50 + 37% of the amount over $500,000Filing status: Married filing jointly or Qualifying widow(er)Taxable incomeТаxAt least $0 but not over $19,05010% of the amount over $0Over $19,050 but not over $77,400$1,905 + 12% of the amount over $19,050Over $77,400 but not over $165,000$8,907 + 22% of the amount over $77,400Over $165,000 but not over $315,000$28,179 + 24% of the amount over $165,000Over $315,000 but not over $400,00$64,179 + 32% of the amount over $315,000Over $400,00 but not over $600,000$91,379 + 35% of the amount over $400,000Over $600,000$161,379 + 37% of the amount over $600,000Filing status: Married filing separatelyTaxable incomeТахAt least $0 but not over $9,52510% of the amount over $0Over $9,525 but not over $38,700$952.50 + 12% of the amount over $9,525Over $38,700 but not over $82,500$4,453.50 + 22% of the amount over $38,700Over $82,500 but not over $157,500$14,089.50 + 24% of the amount over $82,500Over $157,500 but not over $200,000$32,089.50 + 32% of the amount over $157,500Over $200,000 but not over $300,000$45,689.50 + 35% of the amount over $200,000Over $300,000$80,689.50 + 37% of the amount over $300,000Filing status: Head of householdTaxable incomeТаxAt least $0 but not over $13,60010% of the amount over $0Over $13,600 but not over $51,800$1,360 + 12% of the amount over $13,600Over $51,800 but not over $82,500$5,944 + 22% of the amount over $51,800Over $82,500 but not over $157,500$12,698 + 24% of the amount over $82,500Over $157,500 but not over $200,000$30,698 + 32% of the amount over $157,500Over $200,000 but not over $500,000$44,298 + 35% of the amount over $200,000Over $500,000$149,298 + 37% of the amount over $500,000

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