Sasha and Tara are married, filing jointly. Their correctly determined 2018 taxable income is $127,000. This taxable income includes a $5,000 1231 gain from the sale of business land that was part of their $22,000 of net long-term capital gain. None of the net long-term capital gain was from collectibles.

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If an amount is zero, enter"0". If required, round your answer to the nearest dollar.

a. In addition to their Form 1040, the couple would include Schedule D, Form 4797, and Form 8949 in their income tax return, because they have a 1231 gain that became part of their net long-term capital gain.

b. Is any of the 1231 gain unrecaptured 1250 gain and subject to the 25% tax rate? Because business land was sold, $............. of the 1231 gain is unrecaptured 1250 gain subject to the 25% tax rate.

c. Compute the couple's tax on taxable income by using the alternative tax on net capital gain method. The tax on ordinary taxable income is $.......... and the tax on the capital gain is $........... for a total tax of $..........