Tawana owns and operates a sole proprietorship and has a 40 percent marginal tax rate. She provides her son, Jonathon, $22,000 a year for college expenses. Jonathon works as a pizza delivery person every fall, and has a marginal tax rate of 15 percent.

b. How much pretax income does it currently take Tawana to generate the $22,000 (after taxes) given to Jonathon? (Round your answer to the nearest whole dollar amount.)

Pre Tax Income:

c. If Jonathon worked for his mothers sole proprietorship, what salary would she have to pay him to generate $22,000 after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)? (Round your answer to the nearest whole dollar amount.)

Salary:

d. How much money would this strategy save? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)

This Strategy will save Tawana: __________pretax and will save the family_____after tax