Kristoff and Anna, a married couple, are in their mid-thirties. They have two children, ages 5 and 3. Anna is a part-time cartoonist at Walt Disney World and Kristoff is also employed there as a full-time entertainer. They are each covered by $50,000 life insurance policies provided by Disney as part of their employee benefit plan. In addition, Kristoff has a separate policy with a face value of $75,000. The family is reassessing their life insurance program. They have determined that the family would receive $2,300 per month from Social Security survivor s benefits if Kristoff were to die prematurely. In addition to the Social Security, they would need to replace $32,400 a year to sustain their current lifestyle. While they have had good intentions, they have been unable to start a college savings fund. They estimate it would cost $30,000 in today s dollars to put each child through college. They would like to have enough life insurance to fund that amount. They expect that burial expenses would be $8,000. They would like to have enough life insurance to pay off their $110,000 home mortgage, $6,000 in credit card debt, and $25,000 in auto loans if either were to die prematurely. They have managed to save $50,000 in an investment portfolio and have $12,000 in a money market saving account in a local bank. Both agree they want full life insurance coverage until the youngest reaches age 18. The family is in the 25% MTB. Assume an 8% before-tax rate return and an inflation rate of 2.5%. Using the Needs Analysis approach from the lecture/workbook, approximately what is Kristoff s income replacement need?