Scenario 20-6 Zooey Is a Single Mother of Two Young Children Whose

Multiple Choice

Scenario 20-6
Zooey is a single mother of two young children whose husband died in a tragic car accident. She earns $20,000 per year working as a cashier at a grocery store. The government uses a negative income tax system in which
Taxes owed = (1/4 of income) - $15,000.
-Refer to Scenario 20-6. How much does Zooey owe or receive from the government?

A) She receives $10,000.
B) She owes $10,000.
C) She receives $15,000.
D) She owes $5,000