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Exercise $3-22($LO$.7)$

In $2024,$ Jack, age $12,$ has interest income of $$4,900$ on funds he inherited from his aunt and no earned income. He has no investment expenses. Christian and Danielle $($his parents$)$ have taxable income of $$94,150$ and file a joint return. Assume that no parental election is made.

Click here to access the $2024$ tax rate schedule. If required, round the tax liability to the nearest dollar.

$\backslash$table$[[$Jack$\text{'}$s net unearned income is$,],[$Jack$\text{'}$s allocable parental tax is$,$X$.],[$Jack$\text{'}$s total tax is$,$X$.]]$

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To reduce the tax savings that result from shifting income from parents to children, the net unearned income $($commonly calied invers$)$ income$)$ of certain children is taxed using special rules. This provision, commonly referred to as the kiddie tax, applies to any child wh under age $19($or under age $24$ if a full$-$time student$).$