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Problem 14-66 (LO. 5) Asok's AGI for 2020 is $133,250. Included in this AGI is a $45,000 25% long-term capital gain and a $13,000 0%/15%/20%

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Problem 14-66 (LO. 5) Asok's AGI for 2020 is $133,250. Included in this AGI is a $45,000 25% long-term capital gain and a $13,000 0%/15%/20% long-term capital gain. Asok is single and uses the standard deduction Compute his taxable income, the tax liability, and the tax savings from the alternative tax on net capital gain. Click here to access the tax rate schedules to use for this problem, When computing the tax on the gain, calculate each part separately, rounding interim calculations to two decimal places. Then, round your final answer for the tax to the nearest dollar. Hint: The 25% gain is calculated at two different rates. Asok's taxable income: . His regular tax liability: His tax liability using the alternative tax approach: $ . The tax savings from using the alternative tax approach: s! Feedback Check My Work The alternative tax computation allows the taxpayer to receive the lower of the regular tax or the alternative tax on each layer of net capit or portion of each layer of net capital gain. D of the amount Over- .....109 2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over Over- over The tax is: $ 0 $ 9,875 ... 10% $ 0 $ 0 $ 14,100 9,875 40,125 $ 987.50 + 1296 9,875 14,100 53,700 $ 1.410.00-1296 40,125 85,525 4,617.50 +22% 40,125 53,700 85,500 6,162.00 +2296 85,525 163,300 14,605.50 +24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50+ 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50+ 35% 207,350 207,350 518,400 45,926.00 + 35% 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 +3796 Married filing jointly or Qualifying widow(er) Married filing separately-Schedule Y-2 Schedule Y-1 I If taxable of the If taxable income is: But not amount income is: But not Over- over The tax is: over Over- over The tax is: 5 0 $ 19,750 ..10% $ 0 s 0 $ 9,875 19,750 80,250 $ 1,975.00+ 12% 19,750 9,875 40,125 $ 987.50 +12 80,250 171,050 9,235,00 + 22% 80,250 40,125 85,525 4,617.50 +22% 171,050 326,600 29,211.00 +24% 171,050 85,525 163,300 14,605.50 +24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 +37% 5 0 14,100 53,700 85,500 163,300 207,350 518,400 of the amount over- $ 0 ...109 9,875 40,125 85,525 163,300 207,350 311,025

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