Income Shifti ng and Kidd ie Tax. Ralph and Tina are
married, file jointly, and have $500,000 of taxable income. They transfer
ownership of corporate bonds to Pam, their single, dependent daughter . Pam’s
only gross income for the current year is the $14,000 of interest on the
corporate bonds. In each of the following cases, determine the amount of tax
the family saves in the current year because Pam owns the bonds rather than
Ralph and Tina.
a. Pam is age 12.
b. Pam is age 25.
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