During 2021, your clients, Mr. and Mrs. Howell, owned the following investment assets:

Investment Assets	Date Acquired	Purchase Price	Brokers Commission Paid at Time of Purchase
300 shares of IBM common	11/22/2018	$ 10,450	$ 100
200 shares of IBM common	4/3/2019	43,350	300
3,000 shares of Apple preferred	12/12/2019	157,000	1,300
2,100 shares of Cisco common	8/14/2020	53,500	550
420 shares of Vanguard mutual fund	3/2/2021	15,700	No-load fund*

*No commissions are charged when no-load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021:

Investment Assets	Date Sold	Sale Price	Brokers Commission Paid at Time of Sale
300 shares of IBM common	5/6	$ 14,700	$ 100
3,000 shares of Apple preferred	10/5	222,400	2,000
2,100 shares of Cisco common	8/15	63,350	650
451 shares of Vanguard mutual fund	12/21	16,700	No-load fund*

*No commissions are charged when no-load mutual funds are bought and sold.

The Howells broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example, the IBM sales proceeds were reported as $14,600 on the Form 1099-B they received.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2021:

• The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2021.
• In 2014, Mrs. Howell loaned $7,000 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan.
• The Howells have a $3,300 short-term capital loss carryover and a $5,800 long-term capital loss carryover from prior years.
• The Howells did not instruct their broker to sell any particular lot of IBM stock.
• The Howells earned $3,500 in municipal bond interest, $3,500 in interest from corporate bonds, and $5,000 in qualified dividends.
• Assume the Howells have $155,000 of wage income during the year.

a. Use Form 8949 and page 1 of Schedule D to compute net long-term and short-term capital gains. Then, compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $26,000. Assume that asset bases are reported to the IRS

only need the Howells' tax liability

During 2021, your clients, Mr and Mrs. Howell, owned the following investment assets: Iuvent Asset Date quad Purchase Price 300 shares of ICON 11/2/2010 $10.450 200 shares at TAM common 372019 17.350 3.000 shares of Apple preferred 12/12/2019 157.000 2.100 shares of Cinco 8/14/2020 53,500 420 share of Vanguard mutual fund 3/2/2011 15.700 "No Commissions are charged when no load mutual funds are bought and sold. Troker' Con Paidat Tine of Purchase $ 100 300 1.300 550 No-load fundo Because of the downturn in the stock market, Mr and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021 Broker Camisrion Paidat Date old Sale Tree Tin of Sale 300 hrs of To con 5/6 $14.700 $ 100 3.000 shares of Apple preferred 30/5 222.400 3.000 1. 100 that of Circo con /15 63. 150 650 451 shares of Virtual fund 10, 700 Nr-load fuado *No commissions are charged when no load mutual funds are bought and sold The Howells' broker issued them a Form 10098 showing the sales proceeds net of the commissions paid. For example, the IDM sales proceeds were reported as $14.600 on the Form 1099-B they received In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2021 The Howells received a Form 1099-8 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2021 . In 2014, Mrs. Howell loaned $7,000 to a friend who was starting a new multilevel marketing company called LD3 The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan The Howells have a $3.300 short-term capital loss carryover and a $5.800 long-term capital loss carryover from prior years The Howells did not instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,500 in municipal bond interest. $3.500 in interest from corporate bonds, and $5,000 in qualified dividends. Assume the Howells have $155.000 of wage income during the year. . Use Form 8949 and page 1 of Schedule D to compute net long-term and short term capital gains. Then, compute the Howells Tax ability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $26.000. Assume that asset bases are reported to the IRS Required information ca) encription of property (Example 100 Sh XYZ.COM (b) Date our (mind (0) Date sold og disposed of (mm/ddiyyyy) (d) Proceeds (sales price) (see instructions) VW basis. See the Note below and see Column) in the separate Instructions (Code(s) tron instructions (0) Amount of adjustments war (los) Subtract column fe) from column (d) and combine the reput with column (9) 4050 300 Sh IBM common 1922/2018 2.100 s Cisco com 10014/2020 3,000 th Anplo proferred 12/12/2019 05/002021 08/15/2021 1005/2021 OOO 14.600 62 700 220,400 10.550 54050 158,300 OOO 8,650 62.100 Totals Add the amount in columns (d tea and th) (sustadt negative arounts) Enter cach total here and include on your schedule D. Iine if Box above is chade), Ine of Bos E above checked. 10 of Box above is checked) 297,700 222.900 74.800 Notell you checked Bor Dabove but the basis reported to their was incorrect, enter in colurn the basis as reported to the Rama antar and adjustment in column to correct the basis Seo Column to in the separate instructions for how to figure the amount of the adjustment THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education Form 8949 (2020) Answer is not complete. Hintable for the a) Description of property (Example: 100 th XYZ CO (b) Date acqused (mm/dd/yyy) (c) Dale sold or disposed of (mm/ddwy) (0) Proceeds (sales price) (see instructions) e di basin See the Note below and see Column (e) in the separte instructions it) Code (5) from instructions Our (0) Subtract column (e) from column (d) and combine the result with column) Amount of adjustments 14,600 100 IBM common 2.100 hasco common 3,000 sh Apple preferred OOO 1122/2018 09/14/2020 12/12/2019 OOO 05/06/2021 08/15/2021 10/05/2021 OOO 62,700 220,400 10.550 54050 158 300 4,050 8,650 62.100 2. Add the amount in columns (a), (o)(a) and (h) (suttract negative wints Enter each total here and include on your schedule nebor Box D above is checked) in of Box E above it checked, or ne 10 ofloxahove is chodod 297700 22.2.900 74,800 Mae you checked Box above but the basis reported to the life was incorect enter in column to the basis as reported to laiks, and enter and dustment in column (o) to correct the ti Des.Column to in the separate instructions for how to figure the amount of the adjustment THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL, 2021 McGraw. Education Form 8949 (2020) Answer is not complete. How that transactions on Form 949. leave the line bank and go to TD 16 Totoro transactions reported on Form) BORA checked 167001 23.6001 (6,900) 2 Toss for ad transaction reported on ex checked 3 for ford transaction reported on om Box checked 4 Short term gain from Form 6252 and thort sem gan or otros Forms 4034,0731 and 324 4 5 Net thort term gan of contro partnerships, corporation states, and trusts from Schedule() K-1 5 6 Short-term captat carryover Ender the amount any tromines of your Capital Loss Caryover Woche in the instructions 6 (3.300) 7 Net short form capital gain oro) Combined through in column if you have any long been capital game lasses, go to Part Il below to go to Pardon the bad (10.200) Part Long Term Capital Gains and Losses Generally Assets Held More Than One Year (see Instructions) De instructions for how to sure the amount to be on the lines Adjustment below to pan or loss Proceede (o) Costor trom Form) hun of oss) Subtract column (e) from This form may be ser to complete your docents to pico) 1909. Part column (d) and combine the result with who dofan 2 column) columna da os for a long formacions reported on om 1000 for which basd wat repeded to the US and for which you have to adu Centrum) However, if you choocelo report all the trantaconton Form 0907 visne bank and to in 15 stol or a chon reported on Form checked 297.700 222.900 74.000 lolate of orendon - chocked 1d Total for schon reported on Fox Chocked 11 On tomorrongen om 4n6252 and long term on 050) 46781 and 24 11 12 Netlong tam gain or dos) to partnerships, corporations, and it riched) 1 12 13 Capital gaindicho See the structions 13 900 14 Long tercapalloss carryover Enter the amount any from line 13 of your Capital Loss Carryover Wheel in the Cras negative Instruction 16 (5,000) 15 Net long term capital gan doss) Combine nestao din column (h) then go to Part on the back 15 69 900 For Paperwork Reduction Act Notice, we your tax return instructions CHINO Schedule Form 1040 1040.SR) 2020 TIAS TORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORM FOR TAX FRINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2001 McGraw Hal Education Answer is not complete. Town to During 2021, your clients, Mr and Mrs. Howell, owned the following investment assets: Iuvent Asset Date quad Purchase Price 300 shares of ICON 11/2/2010 $10.450 200 shares at TAM common 372019 17.350 3.000 shares of Apple preferred 12/12/2019 157.000 2.100 shares of Cinco 8/14/2020 53,500 420 share of Vanguard mutual fund 3/2/2011 15.700 "No Commissions are charged when no load mutual funds are bought and sold. Troker' Con Paidat Tine of Purchase $ 100 300 1.300 550 No-load fundo Because of the downturn in the stock market, Mr and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021 Broker Camisrion Paidat Date old Sale Tree Tin of Sale 300 hrs of To con 5/6 $14.700 $ 100 3.000 shares of Apple preferred 30/5 222.400 3.000 1. 100 that of Circo con /15 63. 150 650 451 shares of Virtual fund 10, 700 Nr-load fuado *No commissions are charged when no load mutual funds are bought and sold The Howells' broker issued them a Form 10098 showing the sales proceeds net of the commissions paid. For example, the IDM sales proceeds were reported as $14.600 on the Form 1099-B they received In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning 2021 The Howells received a Form 1099-8 from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2021 . In 2014, Mrs. Howell loaned $7,000 to a friend who was starting a new multilevel marketing company called LD3 The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan The Howells have a $3.300 short-term capital loss carryover and a $5.800 long-term capital loss carryover from prior years The Howells did not instruct their broker to sell any particular lot of IBM stock. The Howells earned $3,500 in municipal bond interest. $3.500 in interest from corporate bonds, and $5,000 in qualified dividends. Assume the Howells have $155.000 of wage income during the year. . Use Form 8949 and page 1 of Schedule D to compute net long-term and short term capital gains. Then, compute the Howells Tax ability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $26.000. Assume that asset bases are reported to the IRS Required information ca) encription of property (Example 100 Sh XYZ.COM (b) Date our (mind (0) Date sold og disposed of (mm/ddiyyyy) (d) Proceeds (sales price) (see instructions) VW basis. See the Note below and see Column) in the separate Instructions (Code(s) tron instructions (0) Amount of adjustments war (los) Subtract column fe) from column (d) and combine the reput with column (9) 4050 300 Sh IBM common 1922/2018 2.100 s Cisco com 10014/2020 3,000 th Anplo proferred 12/12/2019 05/002021 08/15/2021 1005/2021 OOO 14.600 62 700 220,400 10.550 54050 158,300 OOO 8,650 62.100 Totals Add the amount in columns (d tea and th) (sustadt negative arounts) Enter cach total here and include on your schedule D. Iine if Box above is chade), Ine of Bos E above checked. 10 of Box above is checked) 297,700 222.900 74.800 Notell you checked Bor Dabove but the basis reported to their was incorrect, enter in colurn the basis as reported to the Rama antar and adjustment in column to correct the basis Seo Column to in the separate instructions for how to figure the amount of the adjustment THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education Form 8949 (2020) Answer is not complete. Hintable for the a) Description of property (Example: 100 th XYZ CO (b) Date acqused (mm/dd/yyy) (c) Dale sold or disposed of (mm/ddwy) (0) Proceeds (sales price) (see instructions) e di basin See the Note below and see Column (e) in the separte instructions it) Code (5) from instructions Our (0) Subtract column (e) from column (d) and combine the result with column) Amount of adjustments 14,600 100 IBM common 2.100 hasco common 3,000 sh Apple preferred OOO 1122/2018 09/14/2020 12/12/2019 OOO 05/06/2021 08/15/2021 10/05/2021 OOO 62,700 220,400 10.550 54050 158 300 4,050 8,650 62.100 2. Add the amount in columns (a), (o)(a) and (h) (suttract negative wints Enter each total here and include on your schedule nebor Box D above is checked) in of Box E above it checked, or ne 10 ofloxahove is chodod 297700 22.2.900 74,800 Mae you checked Box above but the basis reported to the life was incorect enter in column to the basis as reported to laiks, and enter and dustment in column (o) to correct the ti Des.Column to in the separate instructions for how to figure the amount of the adjustment THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL, 2021 McGraw. Education Form 8949 (2020) Answer is not complete. How that transactions on Form 949. leave the line bank and go to TD 16 Totoro transactions reported on Form) BORA checked 167001 23.6001 (6,900) 2 Toss for ad transaction reported on ex checked 3 for ford transaction reported on om Box checked 4 Short term gain from Form 6252 and thort sem gan or otros Forms 4034,0731 and 324 4 5 Net thort term gan of contro partnerships, corporation states, and trusts from Schedule() K-1 5 6 Short-term captat carryover Ender the amount any tromines of your Capital Loss Caryover Woche in the instructions 6 (3.300) 7 Net short form capital gain oro) Combined through in column if you have any long been capital game lasses, go to Part Il below to go to Pardon the bad (10.200) Part Long Term Capital Gains and Losses Generally Assets Held More Than One Year (see Instructions) De instructions for how to sure the amount to be on the lines Adjustment below to pan or loss Proceede (o) Costor trom Form) hun of oss) Subtract column (e) from This form may be ser to complete your docents to pico) 1909. Part column (d) and combine the result with who dofan 2 column) columna da os for a long formacions reported on om 1000 for which basd wat repeded to the US and for which you have to adu Centrum) However, if you choocelo report all the trantaconton Form 0907 visne bank and to in 15 stol or a chon reported on Form checked 297.700 222.900 74.000 lolate of orendon - chocked 1d Total for schon reported on Fox Chocked 11 On tomorrongen om 4n6252 and long term on 050) 46781 and 24 11 12 Netlong tam gain or dos) to partnerships, corporations, and it riched) 1 12 13 Capital gaindicho See the structions 13 900 14 Long tercapalloss carryover Enter the amount any from line 13 of your Capital Loss Carryover Wheel in the Cras negative Instruction 16 (5,000) 15 Net long term capital gan doss) Combine nestao din column (h) then go to Part on the back 15 69 900 For Paperwork Reduction Act Notice, we your tax return instructions CHINO Schedule Form 1040 1040.SR) 2020 TIAS TORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORM FOR TAX FRINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2001 McGraw Hal Education Answer is not complete. Town to