Ross and

Tyanna

Tyanna are$$ married, file$$ jointly, and have

$$590,000$ of taxable income. They transfer ownership of corporate bonds to

Piper

Piper$,$ their single daughter. There is

$$12,500$ of interest on the corporate bonds in the current year. $($Assume the current tax year is

$2024.)$

Filing Status Standard Deduction

Married individuals filing joint returns and surviving spouses $

$29,200$

Heads of households $

$21,900$

Unmarried individuals $($other than surviving spouses and heads of households$)$ $

$14,600$

Married individuals filing separate returns $

$14,600$

Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses $$1,550*$

Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse $$1,950*$

Taxpayer claimed as dependent on another taxpayer$$s return: Greater of $(1)$ earned income plus $$450$ or $(2)$ $$1,300.$

$*$ These amounts are $$3,100$ and $$3,900,$ respectively, for a taxpayer who is both aged and blind.

If taxable income is: The tax is:

Not over $$23,200$ If taxable income is not over $ $23,200,$ the tax is

$10\%$ of taxable income

Over $$23,200$ but not over $$94,300$ If taxable income is over $ $23,200$ but not over $ $94,300,$ the tax is

$$2,320\mathrm{.}00+12\%$ of the excess over $$23,200$

Over $$94,300$ but not over $$201,050$ If taxable income is over $ $94,300$ but not over $ $201,050,$ the tax is

$$10,852\mathrm{.}00+22\%$ of the excess over $$94,300$

Over $$201,050$ but not over $$383,900$ If taxable income is over $ $201,050$ but not over $ $383,900,$ the tax is

$$34,337\mathrm{.}00+24\%$ of the excess over $$201,050$

Over $$383,900$ but not over $$487,450$ If taxable income is over $ $383,900$ but not over $ $487,450,$ the tax is

$$78,221\mathrm{.}00+32\%$ of the excess over $$383,900$

Over $$487,450$ but not over $$731,200$ If taxable income is over $ $487,450$ but not over $ $731,200,$ the tax is

$$111,357\mathrm{.}00+35\%$ of the excess over $$487,450$

Over $$731,200$ If taxable income is over $ $731,200,$ the tax is

$$196,669\mathrm{.}50+37\%$ of the excess over $$731,200$

If taxable income is: The tax is:

Not over $$11,600$ If taxable income is not over $ $11,600,$ the tax is

$10\%$ of taxable income.

Over $$11,600$ but not over $$47,150$ If taxable income is over $ $11,600$ but not over $ $47,150,$ the tax is

$$1,160\mathrm{.}00+12\%$ of the excess over $$11,600$

Over $$47,150$ but not over $$100,525$ If taxable income is over $ $47,150$ but not over $ $100,525,$ the tax is

$$5,426\mathrm{.}00+22\%$ of the excess over $$47,150$

Over $$100,525$ but not over $$191,950$ If taxable income is over $ $100,525$ but not over $ $191,950,$ the tax is

$$17,168\mathrm{.}50+24\%$ of the excess over $$100,525$

Over $$191,950$ but not over $$243,725$ If taxable income is over $ $191,950$ but not over $ $243,725,$ the tax is

$$39,110\mathrm{.}50+32\%$ of the excess over $$191,950$

Over $$243,725$ but not over $$609,350$ If taxable income is over $ $243,725$ but not over $ $609,350,$ the tax is

$$55,678\mathrm{.}50+35\%$ of the excess over $$243,725$

Over $$609,350$ If taxable income is over $ $609,350,$ the tax is

$$183,647\mathrm{.}25+37\%$ of the excess over $$609,350$

In each of the following$$ cases, determine the amount of tax the family saves in the current year because

Piper

Piper owns the bonds rather than

Ross

Ross and

Tyanna

Tyanna. Assume

Piper

Piper claims the standard deduction.

$1.$ Piper$$Piper is age $12$ and a dependent of her parents. Her only gross income is the $$$$12,500$ of interest.

$2.$ Piper$$Piper is age $25$ and not a dependent of her parents. Her gross income is comprised of the $$$$12,500$ of interest and $$$$38,000$ of wages.

Requirement a$.$ Determine the amount of tax the family saves in the current year because

Piper

Piper owns the bonds rather than

Ross

Ross and

Tyanna

Tyanna. Assume

Piper

Piper claims the standard deduction.

Piper

Piper is age $12$ and a dependent of her parents. Her only gross income is the

$ $12$ comma $500$

$$12,500$ of interest.

Begin by computing the amount that

Ross

Ross and

Tyanna

Tyanna would pay in tax if they owned the bonds.

Ross and Tyanna's tax if reporting the interest income $=$