During 2023, Michael earned $10,000 of interest on a bank account. On the basis of the information provided in the case scenario for Ron and Sandy Peterson, how much of this income will be taxed at his parents' marginal rate? A) $8,750 B) $0 C) $7,500 D) $10,000 CASE STUDY Ron Peterson, age 43, and Sandy Peterson, age 41, are married with two children, Michael, age 12, and Victoria, age 8, who has been blind since her birth. Ron is an architect and general partner with XYZ partnership. Sandy is self-employed as an attorney and works out of a home office. Her home office is exclusively and regularly used for business, and the home office is her principal place of business. Their information forthe tax year 2022 is asfollows: Adjusted gross income $217,300 Itemized deductions (including qualified residential mortgage interest, taxes paid, and charitable contributions) $33,000 Personal and dependency exemptions (taxpayers and children) 4 Early in the current year, Sandys father died. Sandy is the sole beneficiary of her fathers entire estate. The estate is presently in the probate process. Sandys mother, Lisa, age 68, has moved in with them but provides her own support. She was married to Sandys father when he died earlier this year. This is Rons second marriage. He makes monthly support payments to his former wife and his daughter. Because both Ron and Sandy are considered to be self-employed, they make quarterly estimated tax payments each year to cover both their income tax and self-employment tax obligations