Betty and Steve have a 4-year-old child, Gwen. For 2014, Betty and Steve file married filing jointly and have taxable income of $150,000. Gwen has interest income of $10,000 from a bond portfolio her grandfather gave her and no investment expenses. No election is made to include Gwen's income on Betty and Steve's return.
a.For purposes of the parental tax, calculate Gwen's net unearned income.
b.Calculate the amount of Gwen's parental tax.
c.Calculate Gwen's total tax for 2014.

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The Answer of Betty and Steve have a 4-year-old child, Gwen. For 2014, Betty and Steve file married filing jointly and have taxable income of $150,000. Gwen has interest income of $10,000 from a bond portfolio her grandfather gave her and no investment expenses. No election is made to include Gwen's income on Betty and Steve's return.
a.For purposes of the parental tax, calculate Gwen's net unearned income.
b.Calculate the amount of Gwen's parental tax.
c.Calculate Gwen's total tax for 2014.

Betty and Steve Have a 4-Year-Old Child, Gwen