A. What is the amount of Ronald's tax liability

B. What is the amount of Ronald's tax liability if the stock is held for 11 months?

Regan files as a head of household in 2020 and has taxable income of $115,000, including the sale of a stock held as an investment for two years at a gain of $12,000. Only one asset was sold during the year and Regan does not have any capital loss carryovers. (Click the icon to view the 2020 tax rate schedule for the Head of Household filing status.) - Click the icon to view the Preferential Rates for Adjusted Net Capital Gain (ANCG) and Qualified Dividends.) Read the requirements Requirement a. What is the amount of Regan's tax liability ? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest whole dollar.) Tax liability in 2020 . Capital Gains and Dividends Capital gains and losses are assigned to baskets. Five possible tax rates will apply to most capital gains and losses: Ordinary income tax rates (up to 37% in 2020) for gains on assets held one year or less 28% rate on collectibles gains and includible Sec. 1202 gains Preferential tax rates for gains on assets held for more than one year and qualified dividends based on the taxpayer's taxable income and filing status as shown in the following table: Preferencial Rate Single Filing Jointly* Head of Household 0% Up to $40,000 Up to $80,000 Up to $53,600 15% > $40,000 but not over $441,450 > $80,000 but not over $496,600 > $53,600 but not over $469,050 20% Over $441,450 Over $496,600 Over $469,050 * The corresponding amounts if married filing separately are half of the amounts for filing jointly. The preferential rate is zero for taxable income up to $40,000 if married filing separately. If taxable income is: Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85,500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 Head of Household The tax is: . 10% of taxable income. .....$1,410.00 + 12% of the excess over $14,100. .... $6,162.00 + 22% of the excess over $53,700. ... $13,158.00 + 24% of the excess over $85,500. .$31,830.00 + 32% of the excess over $163,300. ... $45,926.00 + 35% of the excess over $207,350. $154,793.50 + 37% of the excess over $518,400