In order to increase funding for federal entitlements programs, the federal government is planning on lifting the cap on the social security tax and taxing all income above $500,000 at 14.00%. The $500,000 income level would be fixed and would not change with inflation while the $137,700 level would still be indexed with inflation. The inflation rate is 1.2%. Consider the impact on three different businesses: A produce farmer with a real taxable income of $59,400 A cotton cultivator with a real taxable income of $252,000 A large dairy farm operator with a real taxable income of $1,113,000 i. What is the lowest average tax rate out of the three businesses given the original schedule (year 0)? a. 9.42% b. 1.53% c. 12.40% d. 1.24% e. None of the above Enter Response Here: ii. What would be the average tax rate for that same business in the new schedule (year 0)? a. 14.00% b. 10.44% c. 12.40% d. 9.24% e. None of the above Enter Response Here: iii. What is the lowest average tax rate out of the three businesses in the new schedule (year 0)? a. 0.00% b. 7.98% c. 6.78% d. 5.56% e. None of the above Enter Response Here: iv. For the produce farm, what would be the social security tax owed in 4 years after the new schedule was implemented? a. $7,366 b. $8,316 c. $7,726 d. $6,138 e. None of the above Enter Response Here: v. For the dairy operation, what would be the social security tax owed in 5 years after the new schedule was implemented? a. $115,230 b. $112,471 c. $95,369 d. $109,218 e. None of the above Enter Response Here: vi. What would be the average tax rate for the dairy operation 5 years after the new schedule was implemented? a. 9.52% b. 10.81% c. 9.61% d. 9.16% e. None of the above Enter Response Here