Capital Gains and Losses (LO. 5)

Rikki has the following capital gains and losses for the current year:

Short-term capital gain $1,000

Long-term capital gain 11,000

Long-term capital loss 3,000

Collectibles gain 8,000

Collectibles loss 2,000

Assume that Rikki is in the 32% marginal tax rate bracket and Rikkis AGI is less than $200,000. Refer to the Capital gains and losses (individuals) table to answer the following question.

Due to the effect of the capital gains and losses, Rikki's taxable income is increased by $___________ and her tax liability is increased by $__________.