Mr. and Mrs. Poe earned $115,900 compensation income and $963 interest this year and recognized a $600 short-term capital gain and a $7,200 long-term capital gain on the sale of securities. They incurred $4,400 investment interest expense and $25,500 other itemized deductions. They have no dependents.

a. Compute the Poe’s income tax on a joint return if they don’t elect to treat long-term capital gain as investment income.

b. Compute the Poe’s income tax if they elect to treat enough long-term capital gain as investment income to allow them to deduct their investment interest.

Assume the taxable year is 2018.