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Required information Comprehensive Problem 07-63 (LO 07-1, LO 07-2, LO 07-3, LO 07-4) (Algo) [The following information applies to the questions displayed below] During 2022,

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Required information Comprehensive Problem 07-63 (LO 07-1, LO 07-2, LO 07-3, LO 07-4) (Algo) [The following information applies to the questions displayed below] During 2022, your clients, Mr. and Mrs. Howell, owned the following investment assets: 'No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2022 and to reinvest in municipal bonds. The following investment assets were sold in 2022 'No commissions are charged when no-load mutual funds are bought and sold. The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example. the IBM sales proceeds were reported as $15,000 on the Form 1099-8 they recelved. In addition to the sales reflected in the table above, the Howelis provided you with the following additional information concerning 2022 : - The Howells recelved a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2022. - In 2016. Mrs. Howell loaned $7,400 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2022, and Mrs. Howell has been notified she will not be recelving any repayment of the loan. - The Howells have a $3,700 short-term capital loss carryover and a $6,200 long-term capital loss carryover from prior years. - The Howells did not instruct their broker to sell any particular lot of IBM stock. - The Howells earned $3,700 in municipal bond interest, $3,700 in interest from corporate bonds, and $5,400 in qualified dividends: - Assume the Howells have $165,000 of wage income during the year. a-2. Compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000. (Use the tax rate schectules, Dlvidends and Capital Gains Tax Rates.) c. Assume the Howells' short-term capital loss carryover from prior years is $83,700 rather than $3,700 as indicated above. If this is the case, how much short-term and long-term capital loss carryover remains to be carried beyond 2022 to future tax years? Note: Leave no cells blank - be certain to enter " 0wherever required

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