Mr. and Mrs. Poe earned $115,900 compensation income and $963 interest this year and recognized a $600 short-term capital gain and a $7,200 long-term capital gain on the sale of securities. They incurred $4,400 investment interest expense and $12,500 other itemized deductions. They have no dependents. Assume the taxable year is 2015. (Round your intermediate calculations to the nearest whole dollar amount.)

a.

Compute the Poes taxable income and income tax on a joint return if they dont elect to treat any long-term capital gain as investment income.

b.	Compute the Poes taxable income and income tax if they elect to treat enough long-term capital gain as investment income to allow them to deduct their investment interest.