Mrs. Franklin, who is in the 37 percent tax bracket, owns a residential apartment building that generates $114,000 annual taxable income. She plans to create a family partnership by giving each of her two children a 15 percent equity interest in the building. (She will retain a 70 percent interest.) Mrs. Franklin will manage the building, and value of her services is $34,000 per year. If Mrs. Franklin’s children are in the 12 percent tax bracket, compute the tax savings from this income-shifting arrangement. (Ignore any payroll tax consequences.)