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Denzel and Pauietta Washington (marginal tax rate 24%) who own a business hire their son John David Washington (marginal tax rate 12%; age 16) and

Denzel and Pauietta Washington (marginal tax rate 24%) who own a business hire their son John David Washington (marginal tax rate 12%; age 16) and pay a salary of $10,000. What is the family's possible tax saving through the income-shifting strategy (ignore any Social Security, Medicare, or self-employment tax issues)? 1.$1,750 2.$1,200 3.$10,000 4.$700 5.$0

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