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Jane and Blair are married taxpayers filing jointly and have 2021 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital

Jane and Blair are married taxpayers filing jointly and have 2021 taxable income of $107,000. The taxable income includes $5,000 of gain from a capital asset held five years, $2,100 of gain from a capital asset held seven months, and $13,000 of gain from a capital asset held four years. All of the capital assets were stock in publicly traded corporations. Jane and Blair also have qualified dividend income of $3,000.

Click here to access the tax rate schedules to use for this problem.

Indicate whether the following items are subject to the alternative tax computation. Select "Yes" if subject to the alternative tax computation; otherwise select "No".

a. $5,000 of gain from a capital asset held five years

YesNoYes

b. $13,000 of gain from a capital asset held four years

YesNoYes

c. $3,000 of qualified dividend income

YesNoYes

d. $2,100 of gain from a capital asset held seven months

YesNoNo

What is the couple's tax on taxable income and the related tax savings from the alternative tax computation (if any)?

The couple's tax on taxable income using the alternative tax calculations is $fill in the blank

The related tax savings from the alternative tax computation is $fill in the blank

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