Schedule Married Joint

Taxable income over: But not over: The tax is:

$0 $18,650 10% of taxable income

$18,650 $75,900 $1,865 plus 15% of the excess over $18,650

$75,900 $153,100 $10,452.50 plus 25% of the excess over $75,900

$153,100 $233,350 $29,752.50 plus 28% of the excess over $153,100

$233,350 $416,700 $52,222.50 plus 33% of the excess over 233,350

$416,700 $470,700 $112,728.00 plus 35% of the excess over $416,700

$470,700 - $131,628.00 plus 39.6% of the excess over $470,700

During the current year, Ron and Anne sold the following assets:

Capital Asset	Market Value		Tax Basis		Holding Period
L stock	$	50,000	$	41,000	> 1 year
M stock		28,000		39,000	> 1 year
N stock		30,000		22,000	< 1 year
O stock		26,000		33,000	< 1 year
Antiques		7,000		4,000	> 1 year
Rental home		300,000*		90,000	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax.

b. Given that Ron and Anne have taxable income of $400,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2017 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)