"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 = ?