Mr$.$ and Mrs$.$ Poe earned $\backslash$$$185,900$ compensation income and $\backslash$$$963$ interest thls year and recognized a $\backslash (\backslash$$ $600\backslash )$ short$-$term capital gain and a $\backslash (\backslash$$ $7,200\backslash )$ long$-$term capital gain on the sale of securitles$.$ They incurred $\backslash (\backslash$$ $4,400\backslash )$ investment Interest expense and $\backslash$$$38,500$ other Itemized deductions. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends.

Required:

a$.$ Compute the Poes' Income tax on a joint return if they don't elect to treat long$-$term capital gain as investment income.

b$.$ Compute the Poes' income tax if they elect to treat enough long$-$term capital gain as investment income to allow them to deduct their investment interest.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Compute the Poes' income tax on a joint return if they don't elect to treat long$-$term capital gain as investment income.

Income tax

Compute the Poes' income tax if they elect to treat enough long$-$term capital gain as investment income to allow them to deduct their investment interest.

Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.

Tax rates for capital gains and qualified dividends

Individual Tax Rate Schedules