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 owes $5,000

b. She receives $10,000.

c. She owes $10,000.

d. She receives $15,000.