Problem 6-36 (LO. 6, 9) Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2018 are as follows: Bonnie's salary Jake's salary Interest income (joint) Rental loss from actively managed rental property Jake's unreimbursed medical expenses All other itemized deductions:* $42,500 26,000 1,500 (23,000) 8,500 Bonnie 19,000 6,400 Jake *None subject to limitations Determine whether Bonnie and Jake should file jointly or separately for 2018. Click here to access the tax rate schedule. If required, round your answers to the nearest dollar. Bonnie Jake Joint AGI 43,250 26,750 47,000 X Total itemized deductions 19,000 Taxable income 24,250 $ Tax $ 2018 Tax Rate Schedules Single-Schedule X If taxable income is: But not Over- over- Head of household-Schedule Z If taxable income is: But not Over- over- The tax is: of the amount over- of the amount over- The tax is: $ 0 $ 9,525 10% $ 0 $ 0 $ 13,600 . 10% $ 0 9,525 $ 952.50 + 12% 9,525 13,600 $ 1,360.00 + 12% 38,700 82,500 51,800 82,500 13,600 51,800 38,700 38,700 51,800 5,944.00 + 22% 4,453.50 + 22% 14,089.50 + 24% 82,500 157,500 82,500 82,500 157,500 82,500 12,698.00 + 24% 30,698.00 + 32% 157,500 200,000 32,089.50 + 32% 157,500 157,500 200,000 157,500 200,000 500,000 45,689.50 + 35% 200,000 200,000 500,000 44,298.00 + 35% 200,000 500,000 150,689.50 + 37% 500,000 500,000 500,000 149,298.00 + 37% Married filing separatelySchedule Y-2 of the If taxable income is: Over- But not amount over- over- The tax is: $ ......... 10% $ 0 ......... 10% $ 0 Married filing jointly or Qualifying widow(er)- Schedule Y-1 If taxable of the income is: But not amount Over- over- The tax is: over- 0 $ 19,050 $ 0 19,050 77,400 $ 1,905.00 + 12% 19,050 77,400 165,000 8,907.00 + 22% 77,400 165,000 315,000 28, 179.00 + 24% 165,000 315,000 400,000 64,179.00 + 32% 315,000 400,000 600,000 91,379.00 + 35% 400,000 600,000 161,379.00 + 37% 600,000 $ 9,525 38,700 9,525 $ 952.50 + 12% 9,525 38,700 82,500 4,453.50 + 22% 38,700 82,500 82,500 157,500 157,500 200,000 14,089.50 + 24% 32,089.50 + 32% 200,000 300,000 45,689.50 + 35% 157,500 200,000 300,000 300,000 80,689.50 + 37%