If taxable income is over:	But not over:	The tax is:
$ 0	$ 22,000	10% of taxable income
$ 22,000	$ 89,450	$2,200 plus 12% of the excess over $22,000
$ 89,450	$ 190,750	$10,294 plus 22% of the excess over $89,450
$ 190,750	$ 364,200	$32,580 plus 24% of the excess over $190,750
$ 364,200	$ 462,500	$74,208 plus 32% of the excess over $364,200
$ 462,500	$ 693,750	$105,664 plus 35% of the excess over $462,500
$ 693,750		$186,601.5 plus 37% of the excess over $693,750

Rate*	Taxable Income
Married Filing Jointly	Married Filing Separately	Single	Head of Household	Trusts and Estates
0%	$0 - $89,250	$0 - $44,625	$0 - $44,625	$0 - $59,750	$0 - $3,000
15%	$89,251 - $553,850	$44,626 - $276,900	$44,626 - $492,300	$59,751 - $523,050	$3,001 - $14,650
20%	$553,851+	$276,901+	$492,301+	$523,051+	$523,051+

Problem 1.

Capital Asset	Market Value	Tax Basis	Holding Period
L stock	$ 52,200	$ 42,100	> 1 year
M stock	30,200	41,200	> 1 year
N stock	32,200	23,100	< 1 year
O stock	28,200	35,200	< 1 year
Antiques	9,200	5,100	> 1 year
Rental home	302,200*	91,100	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).

Ignore the Net Investment Income Tax.

a. Given that Ron and Anne have taxable income of only $18,900 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?

b. Given that Ron and Anne have taxable income of $402,200 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?