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Sophia Johnson is 24 years old and single, lives in anapartment, and has no dependents. Last year she earned $41,100 as asales assistant for Office Furniture Rentals, $3,288 of her wageswere withheld for federal income taxes. In addition, she hadinterest income of $179.

The standard deduction in 2014 was $6,200 for single. Theexemption was claimed to be worth $3,950. The appropriate tax rateschedule is shown below:

EXHIBIT 3.3    Sample TaxRate Schedules

Tax rates levied on personal income vary with the amount ofreported taxable income and the taxpayer's filing status.

2014 Tax Rate Schedules Schedule X-If your filing status isSingle If your taxable income is: The tax is: Over- But not over- of the amount over- 0 $9,075 _ _ _ _ _10% $0 9,075 36,900 $907.50 + 15% 9,075 36,900 89,350 5,081.25 + 25% 36,900 89,350 186,350 18,193.75 + 28% 89,350 186,350 405,100 45,353.75 + 33% 186,350 405,100 406,750 117,541.25 + 35% 405,100 406,750 _ _ _ _ _ 118,118.75 + 39.6% 406,750

a. Calculate her taxable income.
$  

b. Calculate her tax liability. Round the answer to the nearestcent. Use unrounded values in later calculations. (Hint:Use the tax rate schedules given in Exhibit 3.3 to determine hertax liability.)
$  

c. Calculate her tax refund or tax owed. Enter tax owed, if any,as negative amount. Round the answer to the nearest cent.
$  

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