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	$	54,800	$	43,400	> 1 year
M stock		32,800		41,400	> 1 year
N stock		34,800		24,400	< 1 year
O stock		30,800		35,400	< 1 year
Antiques		11,800		6,400	> 1 year
Rental home		304,800*		92,400	> 1 year

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

Problem 7-48 Part-a (Algo)

a. Given that Ron and Anne have taxable income of only $24,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return?

Gross tax liability: _______

b. Given that Ron and Anne have taxable income of $404,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return?

Gross tax liability: _______