The Akais just finished calculating their taxable income for their 2012 joint federal income tax return. It totaled $69,510 and showed no tax credits. Just prior to filing their return, the Akais realized that they had treated a $2,300 outlay as an itemized deduction, rather than correctly treating it as a $2,300 tax credit. a. Use the tax rate schedule in Table 17.3 to calculate the Akais'tax liability and tax due on the basis of their original $69,510 estimate of taxable income b. How much taxable income will the Akais have if they correctly treat the $2,300 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 $2,300 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 Joint Returns $0 to $17,400 $17,401 to $70,700 $70,701 to $142,700 $142,701 to $217,450 $217,451 to $388,350 Over $388,350 Tax Rates 10% 25% 28% 33% 35% a. Based upon the original estimate, the Akai' tax liability and tax due for 2012 is Round to the nearest cent.) b. If they correctly treat the 52,300 as a tax credit rather than a tax deduction, the Aksistaxable income is Round to the nearest dollar.) c. Based upon the correct estimate, the Akais tax liability for 2012 is 5Round to the nearest cent.) Based upon the corect estimate, the Akaistax due for 2012 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? fSelect the best answer below.) A. 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. Your answer is not correct. B. 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 C. 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. 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