BOST 8 [Problem 1] [10 points). America Chavez is 8 years old. She has stocks given to her by her parents (Married and filing joint return; AGI = $500,000) that pay $7,500 in ordinary dividend income. Assume the cost of producing the unearned income is $0. 1. Determine America's taxable income and tax liability, respectively [7 points). 2. What is the purpose of the kiddie tax law? Explain briefly [3 points). BOST 8 [Problem 1] [10 points). America Chavez is 8 years old. She has stocks given to her by her parents (Married and filing joint return; AGI = $500,000) that pay $7,500 in ordinary dividend income. Assume the cost of producing the unearned income is $0. 1. Determine America's taxable income and tax liability, respectively [7 points). 2. What is the purpose of the kiddie tax law? Explain briefly [3 points)