In 2000, Ms. Ennis, a head of household, contributed $63,000 in exchange for 630 shares of Seta stock. Seta is a qualified small business. This year, Ms. Ennis sold all 630 shares for $148,050. Her only other investment income was an $11,025 long-term capital gain from the sale of land. Her taxable income before consideration of her two capital transactions is $756,000. Assume the taxable year is 2020. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: a. Compute Ms. Ennis's income tax and Medicare contribution tax for the year. b. How would the computation change if Ms. Ennis acquired the Seta stock in 2011 instead of 2000? c. How would the computation change if Ms. Ennis acquired the Seta stock in 2015 instead of 2000? Complete this question by entering your ansv Required A Required B Required C Compute Ms. Ennis's income tax and Medicare conto answers to the nearest whole dollar amount.) Amount $ Taxable income Total income tax $ 809,550 231,681 X 2,035 244,741 X Medicare contribution tax $ Total tax $ Required A Required B Required C How would the computation change if Ms. Ennis calculations and final answers to the nearest wh Amount Taxable income $ 0 x | Total income tax $ 0 x Medicare contribution tax $ 0 x Total tax $ 0 x Required A Required B Required C How would the computation change if Ms. Ennis a calculations and final answers to the nearest who Amount Taxable income $ Total income tax $ 852,075 302,586 X 3,651 Medicare contribution tax $ Total tax $ 0 x Heads of Household If taxable income is: Not over $14,100 Over $14,100 but not over $53,700 Over $53,700 but not over $85,500 Over $85,500 but not over $163,300 Over $163,300 but not over $207,350 Over $207,350 but not over $518,400 Over $518,400 The tax is: 10% of taxable income $1,410 + 12% of excess over $14,100 $6,162 + 22% of excess over $53,700 $13,158 + 24% of excess over $85,500 $31,830 + 32% of excess over $163,300 $45,926 + 35% of excess over $207,350 $154,793.50 + 37% of excess over $518,400 Tax rates for capital gains and qualified dividends. 15%** Rate Married Filing Married Filing Single Head of Jointly Separately Household 0%* $0-$80,000 $0 - $40,000 $0-$40,000 $0-$53,600 $80,001 - $40,001 - $40,001 - $53,601 - $496,600 $248,300 $441,450 $469,050 20% $496,601+ $248,301+ $441,451+ $469,051+ The highest income amount in this range for each filing status is referred to as maximum zero rate amount. The highest income amount in this range for each filing status is referred to as maximum 15-percent amount
