$*****$

Scenario $18$:

Statement: Ethan retired at age $56$ and took a $$72,000$ distribution from his Traditional IRA.

Wages: $$25,000($part$-$time work$)$

Interest and Dividend Income: $$1,800$

Itemized Deductions: $$14,000$

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$)$