John's Tax Situation Ever since his wife's death, John Dutton has faced difficult personal and financial circumstances. His job provides him with a fairly good income but requires him to hire a caregiver for his daughters, ages 3 and 5, nearly 20 days a month. This requires him to use in-home childcare services that consume a large portion of his income. Since the Duttons live in a small apartment, this arrangement has been very inconvenient. This problem was magnified when John was forced to work remotely, from home, for most of the year due to the Covid-19 pandemic. Although John has saved some money for his daughters' education and for his retirement, he has not sought to select investments that offer tax benefits. Overall, he needs to look at several aspects of his tax-planning activities to find strategies that will best serve his current and future financial needs. John has assembled the following information for the current tax year. Answer the three questions that follow pertaining to this case. Earnings from wages $94,500 Interest earned on Savings account & GIC $3,200 Capital gains on investments $3,800 $2,750 Total value of non-refundable tax credits $10,000 Inheritance received from long-lost aunt $19,600 Childcare expenses John's marginal federal tax rates for the current year are as follows: 15% on the first $46,000 of taxable income plus 22% on the next $46,000 plus 28% on the next $46.000. Calculate John's net federal tax payable. Show your work Question 7 (1 point) What is John's average federal tax rate in this case? uestion 8 (3 points) Explain three specific ways that might John be able to improve his tax-planning efforts