Required information

Problem 7-48 (LO 7-2) (Algo)

Skip to question

[The following information applies to the questions displayed below.]

During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)

Capital Asset	Market Value		Tax Basis		Holding Period
L stock	$	50,200	$	41,100	> 1 year
M stock		28,200		39,100	> 1 year
N stock		30,200		22,100	< 1 year
O stock		26,200		33,100	< 1 year
Antiques		7,200		4,100	> 1 year
Rental home		300,200*		90,100	> 1 year

*$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax.

Problem 7-48 Part-a (Algo)

a. Given that Ron and Anne have taxable income of only $20,200 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2020 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)