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The answer at the bottom is the correct one, and the attachment shows the explanation. Can you please show me the steps to working it

The answer at the bottom is the correct one, and the attachment shows the explanation. Can you please show me the steps to working it out? During 2023, 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 2023 and to reinvest in municipal bonds. The following investment assets were sold in 2023:
"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 $14,300 on the Form 1099-B they received.
In addition to the sales reflected in the table above, the Howells provided you with the following additional information
concerning 2023:
The Howells received 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 6/30/2023.
In 2017, Mrs. Howell loaned $6,700 to a friend who was starting a new multilevel marketing company called LD3. The
friend declared bankruptcy in 2023, and Mrs. Howell has been notified she will not be receiving any repayment of the
loan.
The Howells have a $3,000 short-term capital loss carryover and a $5,500 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 $3,350 in municipal bond interest, $3,350 in interest from corporate bonds, and $4,700 in qualified
dividends.
Assume the Howells have $147,500 of wage income during the year.
a-3. 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 schedules, Dividends and Capital Gains Tax Rates.)The Howells 2023 tax liability would be $27,402. This is calculated by determining ordinary income of $120,850, which is $188,850 of taxable income
minus $63,300 net long-term capital gain that will be taxed at 15 percent and minus $4,700 qualified dividends that will be taxed at 15 percent. The
long-term capital gains and qualified dividends will be taxed at 15 percent because the Howell's taxable income falls between the maximum zero rate
amount and the maximum 15-percent rate amount. The tax on $120,850 is $17,202 and the 15 percent tax on long-term capital gains and qualified
dividends of $68,000 is $10,200. This results in a total 2023 tax liability of $27,402.
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