Bob and Anna are in the 37% tax bracket for ordinary income and the 20% bracket for capital gains (ignore the 3.8% additional tax on investment income for higher-income taxpayers.) They have owed several blocks of stock for many years. They are considering the sale of two blocks of stock. The sale of one block would produce a gain of $10,000. The sale of the other would produce a loss of $15,000. For purposes of this problem, ignore any restrictions on deductions or credits based on AGL. They have no other gains or losses this year.

a. How much tax, will they save if they sell the block of stock that produces a loss?

b. How much additional tax will they pay if they sell the block of stock that produces a gain?