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Tawana owns and operates a sole proprietorship and has a 3 7 percent marginal tax rate. She provides her son, Jonathon, $ 7 , 5

Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon,
$7,500 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15
percent.
Required:
a. What could Tawana do to reduce her family tax burden?
b. How much pretax income does it currently take Tawana to generate the $7,500(after taxes) given to Jonathon?
c. If Jonathon worked for his mother's sole proprietorship, what salary would she have to pay him to generate $7,500 after
taxes (ignoring any Social Security, Medicare, or self-employment tax issues)?
d. How much money would the strategy in part (c) save?
Complete this question by entering your answers in the tabs below.
How much money would the strategy in part (c) save?
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