1. In the current tax year, Jim and Janice Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Note: CY=2019)

1. On May 12, 20CY, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2012. The fair market value on the date of Grandma's death was $90,000 and Grandma's adjusted basis of the painting was $25,000.
2. Applied a long-term capital loss carryover from prior year of $10,000.
3. Recognized a $12,000 loss on 11/1/CY sale of bonds (acquired on 5/12/04).
4. Recognized a $4,000 gain on 12/12/CY sale of IBM stock (acquired on 2/5/CY).
5. Recognized a $17,000 gain on the 10/17/CY sale of rental property (the only 1231 transaction) of which $8,000 is reportable as gain subject to the 25 percent maximum rate and the remaining $9,000 is subject to the 15 percent maximum rate (the property was acquired on 8/2/07).
6. Recognized a $12,000 loss on 12/20/CY sale of bonds (acquired on 1/18/CY).
7. Recognized a $7,000 gain on 6/27/CY sale of BH stock (acquired on 7/30/04).
8. Recognized an $11,000 loss on 6/13/CY sale of QuikCo stock (acquired on 3/20/07).
9. Received $500 of qualified dividends on 7/15/CY.

Complete the required capital gains netting procedures and calculate the Jacksons current year tax liability.