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Ray and Karen are married and have 2 children, ages 8 and 6. Karen has not worked outside the home since the birth of their first child. Now that the children are older, she wants to return to working outside the home. She has a job offer that would pay her $27,000 per year. For her to take the job, the children will need to go to after-school care. The Care Center will cost $500 per month. Given the high cost of child care, Ray and Karen are wondering whether it is financially worthwhile for Karen to take the job. They project that their current-year taxable income, without this new job, is $45,000. Compute the amount of after-tax income the couple will have if Karen does not take the job.Compute the amount of after-tax income the couple will have if Karen does take the job.
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