You have set up your tax preparation firm as an incorporated business. You took $80,000 from the firm as your salary. The firm's taxable income for the year (net of your salary) was $30,000. Assume you pay personal taxes as an unmarried taxpayer. Use the tax rates presented in Table 3.6. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. How much tax must be paid to the federal government, including both your personal taxes and the firm's taxes? Answer is complete but not entirely correct. Total taxes $ 18,039.50 b. By how much will you reduce the total tax bill if you cut your salary to $50,000, thereby leaving the firm with taxable income of $60,000? Answer is complete and correct. Tax reduction $ 300.00 c. What allocation will minimize the total tax bill? Hint: Think about marginal tax rates and the ability to shift income from a higher marginal bracket to a lower one. Answer is complete but not entirely correct. Amount of salary to be paid yourself to minimize the tax bill $ 18,735.00 X TABLE 3.6 Personal tax rates, 2018 Tax Rate (%) 10 Taxable Income ($) Married Taxpayers Filling Joint Returns $0-$19,050 $19,051-$77,400 $77,401-$165,000 $165,00 1-$315,000 $315,00 1-$400,000 $400,00 1-$600,000 $600,001 and above Single Taxpayers $0-$9,525 $9,526-$38,700 $38,701-$82,500 $82,501-$157,500 $157,501-$200,000 $200,001-$500,000 $500,001 and above 12 22 24 32 35 37