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

Capital Asset	Market Value		Tax Basis		Holding Period
L stock	$	53,800	$	42,900	> 1 year
M stock		31,800		40,900	> 1 year
N stock		33,800		23,900	< 1 year
O stock		29,800		34,900	< 1 year
Antiques		10,800		5,900	> 1 year
Rental home		303,800*		91,900	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax.

rev: 12_14_2018_QC_CS-151658, 05_09_2019_QC_CS-168203

a. Given that Ron and Anne have taxable income of only $23,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2018 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)

b. Given that Ron and Anne have taxable income of $403,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2018 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)