12. (LO6) The state Abdul lives in has the following income tax rate structure: Percentage Rate Bracket 8% Income from $0 - $100,000 5% Income from $100,001 - $200,000 3% Income in excess of $200,000 Abdul has $250,000 of income. Calculate Abdul's tax liability and indicate what type of tax rate structure his state has. 14. (LO7) Benny has $100,000 to invest and is considering two options: Option A: Earn 6%, investment income is taxable Option B: Earn 4.8%, investment income is tax-exempt Benny has a 24% marginal tax rate. a. What is Benny's explicit and implicit tax on both options? b. Which option provides the greater annual after-tax cash flow?