Mary and Harold are a retired couple. They are both sixty-seven years of age and have been married for over thirty years. Their accountant suggests that they split their pension income to take advantage of the tax break. Harold's annual income is $60,000 of which $46,000 comes from his workplace pension. He has an average tax rate of 25%. Mary has an annual income of $38,000 of which $24,000 comes from her workplace pension. Her average tax rate is 15%. Allocating $11,000 of Harold's pension to Mary, the average tax rate of both spouses would be 20%. How much less would Mary and Harold pay in taxes from splitting their pension income? Select one: a. $2,500 b. $1,800 c. $400 d. $1,100 Next page