[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	$ 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.

a. Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?

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 2023 assuming they file a joint return?

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over: But not over: The tax is: $ 0 $ 22,000 10% of taxable income

$ 22,000 $ 89,450 $2,200 plus 12% of the excess over $22,000

$ 89,450 $ 190,750 $10,294 plus 22% of the excess over $89,450

$ 190,750 $ 364,200 $32,580 plus 24% of the excess over $190,750

$ 364,200 $ 462,500 $74,208 plus 32% of the excess over $364,200

$ 462,500 $ 693,750 $105,664 plus 35% of the excess over $462,500

$ 693,750 $186,601.5 plus 37% of the excess over $693,750