a. Given that Ron and Anne have taxable income of only $20,400 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.) b. Given that Ron and Anne have taxable income of $400,400 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)

Required information Problem 7-48 (LO 7-2) (Algo) [The following information applies to the questions displayed below.) During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Holding Period Capital Asset L stock M stock N stock 0 stock Antiques Rental home Market Value $ 50,400 28,400 30,400 26,400 7,400 300, 400* Tax Basis $41,200 39,200 22,200 33,200 4,200 90,200 > 1 year > 1 year 1 year > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax. Required information Problem 7-48 (LO 7-2) (Algo) [The following information applies to the questions displayed below.) During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Holding Period Capital Asset L stock M stock N stock 0 stock Antiques Rental home Market Value $ 50,400 28,400 30,400 26,400 7,400 300, 400* Tax Basis $41,200 39,200 22,200 33,200 4,200 90,200 > 1 year > 1 year 1 year > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax