[The following information applies to the questions displayed below.]

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)

Capital Asset	Market Value	Tax Basis	Holding Period
L stock	$ 53,400	$ 42,700	> 1 year
M stock	31,400	40,700	> 1 year
N stock	33,400	23,700	< 1 year
O stock	29,400	34,700	< 1 year
Antiques	10,400	5,700	> 1 year
Rental home	303,400*	91,700	> 1 year

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

Problem 7-48 Part-a (Algo)

a. Given that Ron and Anne have taxable income of only $23,400 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2021 assuming they file a joint return?

b. Given that Ron and Anne have taxable income of $403,400 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2021 assuming they file a joint return?