Polly has the following capital gains and losses for the current year:

Here's my work :

28% Rate Gain	6,000 * 0.28	1680
Adj. Net Cap Gain	5,000 * .15	750
Lesser of: Net Invest Inc. and AGI-200K	11,000 *.038	418
Tax Effect		2848

I have also tried entering $2430 as an answer and it is still wrong.

Reference Table:

Capital Gains and Losses (LO. 5) Polly has the following capital gains and losses for the current year: Short-term capital gain Short-term capital loss Long-term capital gain Collectibles gain Collectibles loss $1,000 8,000 5,000 16,000 3,000 Assume that Polly is in the 35% marginal tax rate bracket and her adjusted gross income is $215,000. Refer to the capital gains and losses individuals) table to answer the following question. Hint: The Medicare surtax is 3.8% on excess of AGI over $200,000. Due to the effect of the capital gains and losses Polly's taxable income is increased by 11,000 and her income tax liability on Due to the effect of the capital gains and losses Polly's taxable income is increasedby 1, and her income tax liability on capital gains would be s2,848x Table 3-4 Treatment of Capital Gains and Losses (Individuals) Capital Gain/Loss Position Holding Period 12 months or less More than 12 months Tax Treatment Short-term capital gain Adjusted net capital gain Ordinary income Taxed at 15% (zero percent for 10% or 15% marginal rate taxpayers, 20 percent for 37% marginal rate taxpayers) Taxed at a maximum rate of 25% Taxed at a maximum rate of 28% 50% of gain is excluded. Remaining gain is taxed at a maximum rate of 28% Deductible loss for AGI; limited to $3,000 per year with Unrecaptured Section 1250 gain Net collectibles gain Gain on qualified small business stock More than 12 months More than 12 months More than 5 years Short-term capital loss 12 months or less indefinite carryforward of excess loss to future year's netting Long-term capital loss More than 12 months Deductible loss for AGI;limited to $3,000 per year with Not For indefinite carryforward of excess loss to future year's netting Any short-term losses are applied against the $3,000 limit before long-term losses are deducted