Use the marginal tax rates below for a married couple filing a joint return for their farm business to answer the following two questions: Marginal Taxable Income Tax Rates Range Rate $0 - $12,000 15.0% $12,000 - $50,000 20.0% $50,000 - $100,000 25.0% $100,000 - $200,000 28.0% Assume the farm business is expected to have $180,000 in taxable income over the next 3 years. Without tax planning, normal variability in income would generate an expected taxable income stream of: $25,000 in year 1; $130,000 in year 2; and $25,000 in year 3. With planning, the farm owners could equalize their expected taxable income to be $60,000 for each of the three years. a. What is the expected income tax to be paid for the three year period for each alternative stated above? Show work! (6) b. Explain why the amount of tax paid is higher for the variable income as opposed to the "leveled" income. (3)