Mr. Scott sold rental real estate that had a $186,200 adjusted basis ($200,000 million cost - $13,800 straight-line accumulated depreciation). The sales price was $210,000. This was his only property disposition for the year. Compute Mr. Scott's income tax on his recognized gain assuming that:

a. His marginal tax rate on ordinary income is 15 percent.

b. His marginal tax rate on ordinary income is 39.6 percent?