Kim and Kayne have been dating for years and are now thinking about getting married. As a financially sophisticated couple, they want to think through the tax implications of their potential union. a. Suppose Kim and Kanye both earn $70,000 (so their combined income is $140,000). Using the tax bracket information calculate the combined tax bill that they would pay if they remain single, and compare that to the taxes they would pay if they were married and filed a joint return b. Now suppose that Kim and Kanye both earn $400,000 (so their combined income is $800,000). Calculate the combined tax bill that they would pay if they remain single, and compare that to the taxes that they would pay if they were married and filed a joint return. c. What differences do you find in parts (a) and (b)? What is the cause of these differences? a. If Kim and Kayne remain single, their total tax bill will be $ . (Round to the nearest dollar) If Kim and Kayne are married and filed a joint return, their total tax bill will be $ . (Round to the nearest dollar.) b. If Kim and Kayne remain single, their total tax bill will be $(Round to the nearest dollar.) If Kim and Kayne are married and filed a joint return, their total tax bill will be $ - (Round to the nearest dollar) c. What differences do you find in parts (a) and (b)? What is the cause of these differences? (Select all that apply) A. Income levels that define the upper bound of each tax bracket are not always twice as much for married couples as for single tax payers B. In part (b). Kim and Kanyo pay a marriage penalty because their combined taxes are higher when they are married than when they are single. C. Income levels that define the upper bound of each tax bracket are always twice as much for married couples as for single tax payers D. In part (a), Kim and Kanye pay a "marriage penalty" because their combined taxes are higher when they are married than when they are single Data Table TABLE 1.2: Federal Income Tax Rates and Brackets for Individual Returns (2018) Tax Rates 10.0% 12.0% 22.0% 24.0% 32.0% 35.0% 37.0% Taxable income $0 to $9,875 $9,876 to $40,125 $40,126 to $85,525 $85,526 to $163,300 $163,301 to $207,350 $207,351 to $518,400 Over $518,401 Taxes 10% of taxable income $987.50, plus 12% of the amount over $9,876 $4,617.50, plus 22% of the amount over $40,12 $14,605.50, plus 24% of the amount over $85, $33,271.50, plus 32% of the amount over $163 $47,367.50, plus 35% of the amount over $207 $156,235.50, plus 37% of the amount over $518,401 TABLE 1.2: Tax Rates and Income Brackets for Joint Returns (2018) Taxable income Tax Rates Joint Returns 10% $0 to $19,750 12% $19,751 to $80,250 22% $80,251 to $171,050 24% $171,051 to $326,600 32% $326,601 to $414,700 35% $414,701 to $622,050 37% Over $622,050 Print Done al Income Tax Rates and Brackets for Individual Returns (2018) .xable income 50 to $9,875 876 to $40,125 ,126 to $85,525 -526 to $163,300 5,301 to $207,350 -,351 to $518,400 Over $518,401 Taxes 10% of taxable income $987.50, plus 12% of the amount over $9,876 $4,617.50, plus 22% of the amount over $40,126 $14,605.50, plus 24% of the amount over $85,526 $33,271.50, plus 32% of the amount over $163,301 $47,367.50, plus 35% of the amount over $207,351 $156,235.50, plus 37% of the amount over $518,401 2: Tax Rates and Income Brackets for Joint Returns (2018) Taxable income s Joint Returns $0 to $19,750 $19,751 to $80,250 $80,251 to $171,050 $171,051 to $326,600 $326,601 to $414,700 $414,701 to $622,050 Over $622,050 Print Done