Henrich is a single taxpayer. In 2016, his taxable income is $425,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places. Leave no answer blank. Enter zero if applicable.)

His $425,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.

My question for step (5):

Someone 's Explanation for (5): Long term Capital gains are taxed at preferential rates, taxpayer whose ordinary tax rate is 10%-15%, face 0% capital gain tax, taxpayer coming in 25%-35% bracket face 15% capital gain tax rate and taxpayers whose marginal tax rate is 39.6% face 20% capital gain tax rate. Please note there is no rate of 28% for long term capital gain tax.

My analyzation for step (5):

there is $2,000 of long-term capital gain, 2000 is between 0~ 9275, 10% ordinary tax rate ordinary tax rate at 10%-15% = face 0% capital gain tax. Therefore, 0%.

0% is incorrect. the correct answer is 20%.

What's wrong with this step(5)?

I only have this schedule:

Description Amount $425,000 (1) (2) (3) (4) Taxable income Preferentially taxed income Income taxed at ordinary rates Tax on incom e taxed at ordinary rates 2,000 $123,677.95 400 00 423,000 (1) (2) ($423,000-$415,050) x 39.6% + $120,529.75 (see tax rate schedule for Single individuals) (5) Tax on preterentialy taxed income (2-20% [Notethat if (2) were ordinary income it would (5) Tax on preferentially taxed income taxed part at 39.6%) (6) Income tax (7) Net investment income tax $124,077.95 (4) (5) 76.00 Since Henrich's modified AGI exceeds $200,000, the entire $2,000 long- term capital gain is subject to the 3.8% net investment income tax ($2,000 x 3.8% = $76) Total income & net investment income $124,153.95_ (6) +(7) tax 4 153.9 = (6) + (7)