Kelly is single, has $31,000 of taxable income in 2020 from non-capital gain or loss sources, and has the following capital gains and losses.

28% long-term capital gain - $6,200

28% long-term capital loss - (4,000)

0%/15%/20% long-term capital gain - 15,000

Short-term capital loss - (10,000)

1.What is Kelly's taxable income? Show and label all calculations.

2.How will this taxable income be taxed? Indicate what portion of the taxable income will be taxed at ordinary rates versus preferential rates. Be specific as to which preferential rates apply.