21-"Taxation reduces the gap between the rich and the poor'- Discuss 22-a. At the beginning of your freshman year, your uncle makes the following offer: - Receive $40,000 when you graduate in three years, or - Receive $30,000 now (already reflects PV) - Find the present value of $40000 at 10% of the discount factor using the formula to decide whether to select one out of the given offers. b. Mr Ali earns $35000 as a normal employee, and he is liable to pay 15% of tax out of his salary. If the tax rate increase to 20%, then what will be the additional tax revenue to the Government? 23- Mr. Kale and Mrs Kale married, and Mrs. Kale died 2017 and Mr. Kale a widower with two dependent children living at home. Identify the individual status of Mr. Kale during the year 2018 and 2020 for taxation purpose and what would be his tax liability for the income $150000 during the year 2020 . 24- ABC partnership 2020, compute income tax liability for the partners The partner's included their guaranteed payments and their share or ousiness and interest income in taxable income. Mr. Alton and Mr. Bach paid SE tax on their net earnings form selfemployment. Assuming that Mr. Alton was in a 28% marginal tax rate, and Mr Bach was in a 31% marginal tax rate. Compute each partners after tax cash flow. 25-a. Mr. Bright is a single and has taxable other income of $160000 which includes Long term capital gains of $25000 with a cumulative tax of $15108. Calculate tax liability. b. Bosco is in the 25% bracket. Christie is in the 20% bracket. Each taxpayer pays $1,000 in deductible student loan interest. What is their after-tax interest cost