The question says a. Use Form 8949 and page 1 of Schedule D to compute net long-term and short-term capital gains. Then, 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 dont make any special tax elections, and their itemized deductions total $26,000. Assume that asset bases are reported to the IRS. I attached all of the information except the Schedule D, which I will/can attach.

Required Information [The following information applies to the questions displayed below.] During 2021. your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price 300 shares of IBM common 11/22/2018 $ 10,490 200 shares of IBM common 4/3/2019 43,390 3,eee shares of Apple preferred 12/12/2019 161, eee 2,180 shares of Cisco common 8/14/2e2e 53,988 420 shares of Vanguard mutual fund 3/2/2021 16,100 *No commissions are charged when no-load mutual funds are bought and sold. Broker's Commission Paid at Time of Purchase $ 100 3ee 1,300 550 No-load fund Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021: Investment Assets Date Sold Sale Price 300 shares of IBM common 5/6 $ 15,180 3,880 shares of Apple preferred 10/5 222,880 2,180 shares of Cisco common 8/15 63,390 451 shares of Vanguard mutual fund 12/21 17,100 *No commissions are charged when no-load mutual funds are bought and sold. Broker's Commission Paid at Time of Sale $ 100 2,00 65e No-load fund 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 $15.000 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 2021: The Howells received a Form 1099-3 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 6/30/2021. In 2014. Mrs. Howell loaned $7.400 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3.700 short-term capital loss carryover and a $6.200 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 $3.700 in municipal bond interest, $3.700 in interest from corporate bonds, and $5.400 in qualified dividends. Assume the Howells have $165.000 of wage income during the year. a. Use Form 8949 and page 1 of Schedule D to compute net long-term and short-term capital gains. Then, 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 $26.000. Assume that asset bases are reported to the IRS. Mr. Howell social security number: 412-34-5670 (Input all values as positive numbers unless Instructed otherwise on the forms. Negative amounts should be Indicated by a minus sign. Use 2021 tax rules regardless of year on tax form.) Complete this question by entering your answers in the tabs below. Form 8949 PG1 Form 8949 PG2 Schedule D Form 8949 Page 1 and 2. Form 1949 (2020) Names) shown on return. Name and SSN or taxpayer identification no. not required if shown on other side. Attachment Sequence No. 12A Social security number ar taxpayer identification number Page 2 Before you check Box D, E, or F below, see whether you received any Form(s) 1000-B or substitute statement(s) from your broker. A substitute Statement will have the same information as Fom 1090-8. Either wW Show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check. Part II Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For short-term transactions, sue page 1 Note: You may aggregate al long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments ar codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions) You must check Box D. E. or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2. for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. OD) Long-term transactions reported on Form(s) 1099-8 showing basis was reported to the IRS (see Note above) O(E) Long-term transactions reported on Form(s) 1099-8 showing basis wasn't reported to the IRS OF) Long-term transactions not reported to you on Form 1099-8 1 Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column () See the separate instructions (e) Cost or other (h) Gain or loss) (a) Description of property (b) Date acquired (c) Date sold or disposed () Proceeds (sales basis. See the Nate Subtract column (e) Example: 100 sh.XYZ Co.) (mm/dd/yyyy) of (middlyyyy) price) below and see from calumn (d) and instructions Column() in the (n) Code(s) from (g) Amount of combine the result with instructions adjustments separate instructions column (g) 2 Totals. Add the amounts in columnes colour schedule D, line 8 (f Box D and (h( above is checked), line 9 (if Box E above is checked. Der line 10 (if Bax F above is checked) Note: If you checked Bax D above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter and adjustment in column() to correct the basis. See Column() in the separate instructions for how to figure the amount of the adjustment. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 20:21 McGraw- Hill Education. Form 8948 (2020) Form 8949 PG1 Schedule D > Howells' tax liability for the year Required Information [The following information applies to the questions displayed below.] During 2021. your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Date Acquired Purchase Price 300 shares of IBM common 11/22/2018 $ 10,490 200 shares of IBM common 4/3/2019 43,390 3,eee shares of Apple preferred 12/12/2019 161, eee 2,180 shares of Cisco common 8/14/2e2e 53,988 420 shares of Vanguard mutual fund 3/2/2021 16,100 *No commissions are charged when no-load mutual funds are bought and sold. Broker's Commission Paid at Time of Purchase $ 100 3ee 1,300 550 No-load fund Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2021 and to reinvest in municipal bonds. The following investment assets were sold in 2021: Investment Assets Date Sold Sale Price 300 shares of IBM common 5/6 $ 15,180 3,880 shares of Apple preferred 10/5 222,880 2,180 shares of Cisco common 8/15 63,390 451 shares of Vanguard mutual fund 12/21 17,100 *No commissions are charged when no-load mutual funds are bought and sold. Broker's Commission Paid at Time of Sale $ 100 2,00 65e No-load fund 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 $15.000 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 2021: The Howells received a Form 1099-3 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 6/30/2021. In 2014. Mrs. Howell loaned $7.400 to a friend who was starting a new multilevel marketing company called LD3. The friend declared bankruptcy in 2021, and Mrs. Howell has been notified she will not be receiving any repayment of the loan. The Howells have a $3.700 short-term capital loss carryover and a $6.200 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 $3.700 in municipal bond interest, $3.700 in interest from corporate bonds, and $5.400 in qualified dividends. Assume the Howells have $165.000 of wage income during the year. a. Use Form 8949 and page 1 of Schedule D to compute net long-term and short-term capital gains. Then, 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 $26.000. Assume that asset bases are reported to the IRS. Mr. Howell social security number: 412-34-5670 (Input all values as positive numbers unless Instructed otherwise on the forms. Negative amounts should be Indicated by a minus sign. Use 2021 tax rules regardless of year on tax form.) Complete this question by entering your answers in the tabs below. Form 8949 PG1 Form 8949 PG2 Schedule D Form 8949 Page 1 and 2. Form 8949 Sales and Other Dispositions of Capital Assets OMB No. 1545-0074 Department of the Treasury - Internal Revenue Service 2020 Go to www.irs.gov/Forma949 for instructions and the latest information. File with your Schedule D to list your transactions for lines 1b, 2, 3, ab, 9, 10 of Schedule D. Attachment nice No. 12A Social security number or taxpayer identification number Name(s) shown on return Before you check Box A, B, or below, see whether you received any Fom/s) 1009-6 or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1000-8. Either wW show whether your basis (usually your cost) was reported to the IRS by your broker and may even tell you which box to check Partl Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2. Note You may aggregate all short-term transactions reported on Form(s) 1099-3 showing basis was reported to the IRS and for which no adjustments ar codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box A, B, or C below. Check only one box. If more than one bax applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box. If you have more short-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. O(A) Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS (see Note above) OB) Short-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRS c) Short-term transactions not reported to you on Form 1099-B 1 Adjustment, if any, to gain or loss. If you enter an (e) Cost or other basis. (h) Gain or loss). See the Nate below and amount in column (g), enter a code in column (1) Subtract column (a) See the separate instructions. (a) Description of property (Example: (b) Date acquired (Mo.. see Column (e) in the (c) Date sold or disposed id) Proceeds (sales price) from column (d) and 100 sh.XYZ Ca.) tay ) Di (MB, duy, v.. combine the result with (see instructions) separate instructions (F) Cade(s) from g) Amount of column (9) instructions adjustment various various 2 Totals. Add the amounts in columns (d), (e), (g), and (h) (subtract negative amounts). Enter each total here and include on your Schedule D, line 1b (if Box A above is checked), line 2 (if Box B above is checked). ar line 3 (if Box * Cabave is is checked) Note: If you checked Box A above but the basis reported to the IRS was incorrect, enter in column (e) the basis as reported to the IRS, and enter an adjustment in column (g) to correct the basis. See Column (g) in the separate instructions for how to figure the amount of the adjustment. For Paperwork Reduction Act Notice, see your tax return Instructions. Cat. No. 37768Z THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2021 McGraw-Hill Education Form 8549 (2020)

Howells' tax liability for the year