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Problem $8-77($LO $8-5)($Algo$)$

$[$The following information applies to the questions displayed below.$]$

This year Lloyd, a single taxpayer, estimates that his tax liability will be $$11,200.$ Last year, his total tax liability was $$15,800.$

He estimates that his tax withholding from his employer will be $$8,560.$

Problem $8-77$ Part a $($Algo$)$

a$.$ How much does Lloyd need to increase his withholding by $($for the year$),$ in order to avoid the underpayment penalty?

b$.$ Assuming Lloyd does not make any additional payments, what is the amount of his underpayment penalty? Assume the federal short$-$term rate is $5$ percent.

Note: Do not round intermediate calculations. Round your final answers to $2$