Dan plans to reduce his work schedule and work only half-time for WJJJ in 2017. He has been writing songs for several years and wants to devote more time to developing a career as a songwriter. Because of the uncertainty in the music business, however, he would like you to make all computations assuming that he will have no income from songwriting in 2017. To make up for the loss of income, Freida plans to increase the amount of time she spends selling real estate. She estimates that she will be able to earn $90,000 in 2017. Assume that: All other income and expense items will be approximately the same as they were in 2016. Sam will be enrolled in college as a full-time student for the summer and fall semesters. Gina and Sam will continue to qualify as dependents. A personal exemption amount of $4,050 for 2017. The $3,100 commission received on January 10, 2017 is included in the $90,000 income to be earned by Freida in 2017. The 25% 2016 marginal tax rate remains the same in 2017. Interest income, dividend income, partnership income, and itemized deductions are the same for 2017. Complete the following multiple choice questions regarding whether the Butlers will have more or less disposable income (after federal income tax) in 2017. Question 1: There will be a net reduction in salary and wages of $___________________. A. $37,000 B. $33,000 C. $14,000 My answer selection is: __________ Question 2: The net reduction in salary and wages will also result in a decrease of the ___________________. A. Personal exemptions, Social Security tax, and Medicare tax B. Social Security tax, Medicare tax and itemized deductions C. Kentucky income tax, Social Security tax, and Medicare tax My answer selection is: __________ Question 3: The net reduction in the Butlers after-tax cash flow will be approximately _______________. A. $21,200 B. $28,400 C. $33,000 My answer selection is: __________