Without considering the following capital gains and losses, Charlene, who is single, has taxable income of $445,000 and a marginal tax rate of 39.6%. During the year, she sold stock held for nine months at a gain of $15,000; stock held for three years at a gain of $16,000; and a collectible asset held for six years at a gain of $23,000. Ignore the effect of the gains on any threshold amounts and assume that her marginal tax rate of 39.6% does not change.

Requirement a. What is her taxable income and the increase in her tax liability after considering the three gains?

Her taxable income is

$

.

What is the increase in her tax liability after considering the three gains?

First select the label for the applicable category of gains, then enter the taxable amount. In the last column compute the tax for each category and the increase in tax liability. ( Abbreviations used . Enter the net taxable amount for each category.)

Category	Taxable amount	Rate	Tax
Increase in tax liability

Requirement b. In addition to the above three sales, assume that she sells another asset and has a STCL of $17,000. What is her taxable income and the increase in her tax liability after considering the four transactions?

Her taxable income is

$

.

What is the increase in her tax liability after considering the four transactions?

First select the label for the applicable category of gains, then enter the taxable amount. In the last column compute the tax for each category and the increase in tax liability. ( Abbreviations used . Enter the net taxable amount for each category. If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Category	Taxable amount	Rate	Tax
Increase in tax liability

Requirement c. In addition to the above three sales in Part a, assume that she sells another collectible asset held seven years as an investment and has a $28,000 capital loss. What is her taxable income and the increase in her tax liability after considering the four transactions?

Her taxable income is

$

.

What is the increase in her tax liability after considering the four transactions?

First select the label for the applicable category of gains, then enter the taxable amount. In the last column compute the tax for each category and the increase in tax liability. ( Abbreviations used . Enter the net taxable amount for each category. If a box is not used in the table leave the box empty; do not select a label or enter a zero.)

Category	Taxable amount	Rate	Tax
Increase in tax liability

Requirement d. Determine her medicare tax on net investment income in (a) if all of the $445,000 of taxable income is due to salary.

Her medicare tax on net investment income, from Requirement a, is	$		because all of the $445,000 of taxable
income is due to salary.