For 2016, Lanzo has properly determined that his taxable income is $22,500, including $4,000 of unrecaptured 1250 gain and $2,300 of 0%/15%/20% gain. Lanzo files married filing separately.

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Round your final answers to the nearest dollar.

a. Are both the $4,000 unrecaptured 1250 gain and $2,300 of 0%/15%/20% gain subject to the alternative tax computation?

b. Compute Lanzo's tax liability and tax savings from the alternative tax on net capital gain. Lanzo's tax liability is $ , and the tax saving from the alternative tax computation is $ .