Problem $14-66($LO$.5)$

Asok's AGI for $2023$ is $$133,250.$ Included in this AGI is a $$45,00025\%$ long$-$term capital gain and a $$13,0000\frac{\%}{15}\frac{\%}{20}\%$ long$-$term capital gain. Asok is single and uses the standard deduction. Compute his taxable income, the tax liability, and the tax savings from the alternative tax on net capital gain.

Click here to access the tax rate schedules to use for this problem.

When computing the tax on the gain, calculate each part separately, rounding interim calculations to two decimal places.

Then, round your final answer for the tax to the nearest dollar. Hint: The $25\%$ gain is calculated at two different rates.

Asok's taxable income: : $x$

His regular tax liability: $ $$

His tax liability using the alternative tax approach: $ $x$

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$2023$ Tax Rate Schedules

$\backslash$table$[[$Single$-$Schedule X$,$Head of household$-$Schedule Z$],[\backslash$table$[[$If taxable$],[$income is:$],[$Over$-]],\backslash$table$[[$But not$],[$over$-]],$The tax is:$,\backslash$table$[[$of the$],[$amount$],[$over$-]],\backslash$table$[[$If taxable$],[$income is:$],[$Over$-]],\backslash$table$[[\backslash$table$[[$But not$],[$over$-]]],[$$$15,700$