During $2023,$ your cllents, Mr$.$ and Mrs$.$ Howell, owned the following Investment assets:

$\backslash$table$[[,,,$Broker's Commission Paid$],[300$ shares of IBM comment ASsets,Date Acquired,Purchase Price,at Time of Purchase$],[200$ shares of IBM common $($NYSE: IBM$),\frac{11}{22}\frac{?}{2020},$$$10,450,100],[3,000$ shares of Apple preferred $($NASDAQ: AAPL$),\frac{4}{3}\frac{?}{2021},43,350,300],[2,100$ shares of Cisco common $($NASDAQ: CSCO$),\frac{12}{12}\frac{?}{2021},157,000,1,300],[420$ shares of Vanguard mutual fund,$\frac{8}{14}\frac{?}{2022},53,500,550]]$

$*$No commissions are charged when no$-$load mutual funds are bought and sold.

Because of the downturn in the stock market, Mr$.$ and Mrs$.$ Howell decided to sell most of thelr stocks and the mutual fund In $2023$ and to relnvest in municipal bonds. The following investment assets were sold in $2023$ :

$\backslash$table$[[$Investment Assets,Date sold,Sale Price,Broker's Commission Paid at$],[300$ shares of IBM common,$\frac{5}{6},$$$14,700,$Time of Sale$],[3,000$ shares of Apple preferred,$\frac{10}{5},222,400,100],[2,100$ shares of Cisco common,$\frac{8}{15},63,350,2,000],[451$ shares of Vanguard mutual fund,$\frac{12}{21},16,700,$No$-10$ad fund$*]]$

$*$No commlssions are charged when no$-$load mutual funds are bought and sold,

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 $$14,600$ on the Form $1099-$B they recelved.

In addition to the sales reflected in the table above, the Howells provided you with the following additional information concerning $2023$:

The Howells recelved a Form $1099-$B from the Vanguard mutual fund reporting a $$900$ long$-$term capital galn distribution. This distribution was relnvested in $31$ additional Vanguard mutual fund shares on $6/30/2023.$

In $2017,$ Mrs$.$ Howell loaned $$7,000$ to a friend who was starting a new multilevel marketing company called LD$3.$ The frlend declared bankruptcy in $2023,$ and Mrs$.$ Howell has been notified she will not be recelving any repayment of the loan.

The Howells have a $$3,300$ short$-$term capital loss carryover and a $$5,800$ long$-$term capital loss carryover from prior years.

The Howells did not instruct thelr broker to sell any particular lot of IBM stock.

The Howells earned $$3,500$ in municipal bond interest, $$3,500$ in interest from corporate bonds, and $$5,000$ in qualified dividends.

Assume the Howells have $$155,000$ of wage income during the year.

Comprehensive Problem $07-63$ Part a$-3($Algo$)$

a$-3.$ Compute the Howells' tax Ilability for the year $($Ignoring the alternative min$$mum tax and any phase$-$out provislons$)$ assuming they file a joint return, they have no dependents, they don't make any speclal tax elections, and their itemized deductions total $$30,000.($Use the tax rate schedules, Dividends and Capital Gains Tax Rates.$)$