Required information
[The following information applies to the questionsdisplayed below.]
During the current year, Ron and Anne sold the following assets:(Use the dividends and capital gains tax rates and tax rateschedules.)
| Capital Asset | Market Value | Tax Basis | Holding Period |
| L stock | $ | 54,800 | $ | 43,400 | > 1 year |
| M stock | | 32,800 | | 41,400 | > 1 year |
| N stock | | 34,800 | | 24,400 | < 1 year |
| O stock | | 30,800 | | 35,400 | < 1 year |
| Antiques | | 11,800 | | 6,400 | > 1 year |
| Rental home | | 304,800* | | 92,400 | > 1 year |
|
*$30,000 of the gain is 25 percent gain (from accumulateddepreciation on the property).
Ignore the Net Investment Income Tax.
a. Given that Ron and Anne have taxable income of only $24,800(all ordinary) before considering the tax effect of their assetsales, what is their gross tax liability for 2018 assuming theyfile a joint return? (Round all your intermediate computations tothe nearest whole dollar amount.)
b. Given that Ron and Anne have taxable incomeof $404,800 (all ordinary) before considering the tax effect oftheir asset sales, what is their gross tax liability for 2018assuming they file a joint return? (Round all yourintermediate computations to the nearest whole dollaramount.)
