Ms. Prince wants to create a scholarship in honor of her parents at the law school from which she received her degree. She could endow the scholarship with $400,000 cash or with $400,000 worth of marketable securities with a cost basis of $240,000. Required: If her AGI is $3.8 million, compute the after-tax cost of the two endowment options. Use Individual Tax Rate Schedules and Tax rates for capital gains and qualified dividends. (Enter your answers in dollars not in millions of dollars.) Cash Securities After-tax cost Single If taxable income is: Not over $9,875 Over $9,875 but not over $40,125 Over $40,125 but not over $85,525 Over $85,525 but not over $ 163,300 Over $ 163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is: 10% of taxable income $987.50 + 12% of excess over $9,875 $4,617.50 + 22% of excess over $40,125 $14,605.50 + 24% of excess over $85,525 $33,271.50 + 32% of excess over $ 163,300 $47,367.50 + 35% of excess over $207,350 $156,235 + 37% of excess over 518,400 Tax rates for capital gains and qualified dividends. 0%* ** Rate Married Filing Married Filing Single Head of Jointly Separately Household $0-$80,000 $0-$40,000 $0-$40,000 $0-$53,600 15%* $80,001 - $40,001 - $40,001 - $53,601 - $496,600 $248,300 $441,450 $469,050 20% $496,601+ $248,301+ $441,451+ $469,051+ The highest income amount in this range for each filing status is referred to as maximum zero rate amount. The highest income amount in this range for each filing status is referred to as maximum 15-percent amount