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To reduce the tax savings that result from shifting income from parents to children, the net unearned income $($commonly called

income$)$ of certain children is taxed using special rules. This provision, commonly referred to as the kiddie tax, applies to any ch

under age $19($or under age $24$ if a full$-$time student$)$ and has unearned income of more than $$2,500.$

b$.$ Compute Taylor's "net unearned income" for the purpose of the kiddie tax.

Compute Taylor's tax liability. $[$Her parents file a joint return and have taxable income of $$135,000($no dividends or capital gains$).]$