I tried taking ($20,000 gain * 32% marginal tax rate) = $6,400 increase in tax liability. But, that answer was wrong. I thought maybe it was a long-term gain and tried limiting the tax rate to 20% (20,000*20%=4,000), but that too was wrong. Can you help me identify what the increase in tax liability should be?

"George Jetson earned $175,000 related to a business conducted as a sole proprietorship. He also realized a net capital gain of $20,000.

Assuming George has no other sources of income, his gross income is $. Assuming George's marginal tax rate is 32%, the net capital gain will increase his tax liability by $ ____.

Assuming George's marginal tax rate is 32%, the net capital gain will increase his tax liability by $___."