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During 2022, your clients, Mr, and Mrs, Howell, owned the following investment assets: No commissions are charged when no-load mutual funds are bought and sold.

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During 2022, your clients, Mr, and Mrs, Howell, owned the following investment assets: "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 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022 : '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 $14,400 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 2022: - The Howells received a Form 10998 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 6/30/2022. - In 2016, Mrs. Howell loaned $6,800 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2022, and Mrs. Howell has been notifled she will not be recelving any repayment of the loan. - The Howells have a $3,100 short-term capital loss carryover and a $5,600 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 $3,400 in municipal bond interest, $3,400 in interest from corporate bonds, and $4,800 in qualified dividends. - Assume the Howells have $150,000 of wage income during the year. Comprehensive Problem 07.63 Part a-2 (Algo) 2. Compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they le a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. Jse the tax rate schedules, Dividends and Capital Gains Tax Raless)

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