Polly has the following capital gains and losses for the current year:Here's what I did,

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

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