Can you please solve only part B of this problem by completing the tables below
LLO 7-2 48. During the current year, Ron and Anne sold the following assets: Capital Asset Market Value Tax Basis Holding Period L stock $ 50,000 $41,000 > 1 year M stock 28,000 39,000 > 1 year N stock 30,000 22,000 1 year Rental home 300,000* 90,000 > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). a) Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return? b) Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return? Description Short-term Long term Long-term 28% Long term 25% 0/15/20% 1,000 3,000 30,000 Step 1: Net Short-term on N&O Antiques Unrecaptured 1250 Gain Re Maining gain from rental property Net of Stocks L&M. Step 2 Step 3B: Go to Step 6 Step 4: Go to Step 5 Finish at Step 5 Income before capital stuff Total Taxable income 180,000 -20,000 160,000 3,000 30,000 160,000 1,000 400,000 401,000 Tax using table on non-cap gain income 0/15/20 stuff taxed at 15% 0/15/20 stuff taxed at 20% Cap Gain taxed at 25% Cap gain taxed at 28% Total tax tax on 401,000 see below see below unrecaptured: given antique gain 1488, 850 401,000 Cutoff Ordinary income Amount of 0/15/20 stuff taxed at 15% Tax at 15% Total 0/15/20 capital gain Less: Amount taxed at 15% (from above) Equals: Amount of 0/15/20 gain taxed at 20% Tax at 20% LLO 7-2 48. During the current year, Ron and Anne sold the following assets: Capital Asset Market Value Tax Basis Holding Period L stock $ 50,000 $41,000 > 1 year M stock 28,000 39,000 > 1 year N stock 30,000 22,000 1 year Rental home 300,000* 90,000 > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). a) Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return? b) Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return? Description Short-term Long term Long-term 28% Long term 25% 0/15/20% 1,000 3,000 30,000 Step 1: Net Short-term on N&O Antiques Unrecaptured 1250 Gain Re Maining gain from rental property Net of Stocks L&M. Step 2 Step 3B: Go to Step 6 Step 4: Go to Step 5 Finish at Step 5 Income before capital stuff Total Taxable income 180,000 -20,000 160,000 3,000 30,000 160,000 1,000 400,000 401,000 Tax using table on non-cap gain income 0/15/20 stuff taxed at 15% 0/15/20 stuff taxed at 20% Cap Gain taxed at 25% Cap gain taxed at 28% Total tax tax on 401,000 see below see below unrecaptured: given antique gain 1488, 850 401,000 Cutoff Ordinary income Amount of 0/15/20 stuff taxed at 15% Tax at 15% Total 0/15/20 capital gain Less: Amount taxed at 15% (from above) Equals: Amount of 0/15/20 gain taxed at 20% Tax at 20%
