Question 1 options:What is the annual benefit of parents gifting bonds with annual investment income of $300 to their 10-year-old child if the parents are in the 35 percent and the child is in the 15 percent bracket?(Round your answers to the nearest whole number. Omit the “$” sign in your response.)Tax due if in parents name (a) =Tax due if in childs name (b) =Annual Tax benefit [(a) – (b)] =Save________________________________________Question 2 options:Laurence bought a classic car for $40,000 as a business investment opportunity. He was allowed to depreciate it over 10 years and take the amount as a business tax deduction on his return. At the end of 10 years, the car was sold for $40,000. If Laurence was in the 38 percent marginal tax bracket and could earn 8 percent after tax on the cash flow generated, what was his cumulative cash benefit after sale on this transaction?(Round your answers to the nearest whole number. Omit the comma and “$” sign in your response.)(a) Yearly Deductible Depreciation =(b) Yearly Tax Benefit =(c) Cumulative Tax Benefit (future value) =(d) Tax on $40,000 Capital Gain =(e) Net Cash earned [(c) – (d)] =

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