In 2000, Ms. Ennis, a head of household, contributed $50,000 in exchange for 500 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 500 shares for $117,400. Her only other investment income was an $8,600 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $590,000. Assume the taxable year is 2016. Use Individual tax rate schedules.

a. Compute Ms. Enis's taxable income, income tax and Medicare contribution tax for the year.

b. How would the computation change if Ms. Ennis acquired the Seta stock in 2014 instead of 2000?

Compute Taxable Income, Income Tax and Medicare Contribution Tax for each.