The Akais just finished calculating their taxable income for their 2018 joint federal income tax return. It totaled $69,430 and showed no tax credits. Just prior to filing their return, the Akais realized that they had treated a $2,400 outlay as an itemized deduction, rather than correctly treating it as a $2.400 tax credit. a. Use the tax rate schedule in Table 17.1 to calculate the Akais' tax liability and tax due on the basis of their original $69,430 estimate of taxable income. b. How much taxable income will the Akais have if they correctly treat the $2,400 as a tax credit rather than a tax deduction? c. Use your findings in part (a) to calculate the Akais' tax liability and tax due after converting the $2,400 tax deduction to a tax credit. d. Compare and contrast your findings in parts (a) and (c). Which would you prefer, a tax deduction or an equal-dollar-amount tax credit? Why? In order to calculate income tax due, refer to the table below showing the relevant tax rates for taxpayers filing jointly. Taxable income Tax Rates 10% 12% Joint Returns $0 to $19,050 $17,401 to $77,400 $70,701 to $165,000 $142,701 to $315,000 22% 24% a. Based upon the original estimate, the Akais' tax liability and tax due for 2018 is $ (Round to the nearest cent.) b. If they correctly treat the $2,400 as a tax credit rather than a tax deduction, the Akais' taxable income is $ (Round to the nearest dollar.) c. Based upon the correct estimate, the Akais' tax liability for 2018 is $ (Round to the nearest cent.) Based upon the correct estimate the Akais' tax due for 2018 is $ . (Round to the nearest cent.) d. Compare and contrast your findings in parts (a) and (c). Which would you prefer, a tax deduction or an equal-dollar-amount tax credit? Why? (Select the best answer below.) O A. I would prefer a tax credit over an equal-dollar-amount tax deduction because the tax deduction reduces the overall tax on a dollar-for-dollar basis, resulting in a greater overall reduction in taxes due B . I would prefer a tax deduction over an equal-dollar-amount tax credit because tax credits do not reduce taxes on a dollar-for-dollar basis. O O C. I would prefer a tax deduction over an equal-dollar-amount tax credit because the tax deduction results in a greater overall reduction in taxes due. D . I would prefer a tax credit over an equal-dollar-amount tax deduction, because a tax credit reduces the overall tax obligation on a dollar-for-dollar basis, resulting in a greater overall reduction in taxes due.