1.Asok's AGI for 2018 is $133,050. Included in this AGI is a $45,000 25% long-term capital gain and a $13,000 0%/15%/20% long-term capital gain. Asok is single and uses the standard deduction. Compute his taxable income, the tax liability, and the tax savings from the alternative tax on net capital gain.

Click here to access the tax rate schedules to use for this problem.

When computing the tax on the gain, calculate each part separately, rounding interim calculations to two decimal places. Then, round your final answer for the tax to the nearest dollar. Hint: The 25% gain is calculated at two different rates.

Asok's taxable income: $............... His regular tax liability: $............. His tax liability using the alternative tax approach: $........... The tax savings from using the alternative tax approach: $...........