I:16-37 Netting of Gains and Losses. For each of the four independent scenarios below, compute the additional amount of income tax (or tax savings if a loss) that would result from current gains and losses for

(a) Able Corporation that is taxed at the 21% marginal tax rate or

(b) a sole proprietorship whose ordinary income is taxed at a 37% rate and long-term capital gains, at a 20% rate. (Ignore the 3.8% net investment income tax for higher-income taxpayers for this problem.)

Scenario LTCG or (LTCL) STCG or (STCL) Sec. 1231 Gains Sec. 1231 Losses 1 $10,000 $ 5,000 $10,000 $ 5,000 2 $10,000 $ 15,000 $20,000 $ 5,000 3 $10,000 $(15,000) $ –0– $15,000 4 $20,000 $ 5,000 $10,000 $15,000