Question 1: In 2018, Lisa and Fred, a married couple, have taxable income of $300,000. If they were to file separate tax returns, Lisa would have reported taxable income of $125,000 and Fred would have reported taxable income of $175,000. What is the couples marriage penalty or benefit?

Question 2: Henrich is a single taxpayer. In 2018, his taxable income is $450,000. What are his income tax and net investment income tax liability in each of the following alternative scenarios?

a. All of his income is salary from his employer.

b. His $450,000 of taxable income includes $2,000 of long-term capital gain that is taxed at preferential rates.

c. His $450,000 of taxable income includes $55,000 of long-term capital gain that is taxed at preferential rates.

d. Henrich has $195,000 of taxable income, which includes $50,000 of long-term capital gain that is taxed at preferential rates. Assume his modified AGI is $210,000.