Question
subject - Tax accounting During the current year, Ron and Anne sold the following assets: (Use thedividends and capital gains tax ratesandtax rate schedules.) Capital
"subject - Tax accounting"
During the current year, Ron and Anne sold the following assets: (Use thedividends and capital gains tax ratesandtax rate schedules.)
Capital AssetMarket ValueTax BasisHolding PeriodL stock$54,400$43,200> 1 yearM stock32,40041,200> 1 yearN stock34,40024,200< 1 yearO stock30,40035,200< 1 yearAntiques11,4006,200> 1 yearRental home304,400*92,200> 1 year
*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property).
Ignore the Net Investment Income Tax.
a.Given that Ron and Anne have taxable income of only $24,400 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return?(Round all your intermediate computations to the nearest whole dollar amount.)
GROSS TAX LIABILITIES = ?
b.Given that Ron and Anne have taxable income of $399,100 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2019 assuming they file a joint return?(Round all your intermediate computations to the nearest whole dollar amount.)
GROSS TAX LIABILITIES = ?
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