During the current year, Ron and Anne sold the following assets: (Use thedividends and capital gains tax ratesandtax rate schedules.)

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

O stock 26,000 33,000 < 1 year

Antiques 7,000 4,000 > 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).

Ignore the Net Investment Income Tax.

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?