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Required information [The following information applies to the questions displayed below.] During the current year, Ron and Anne...

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Accounting

Required information

[The following information applies to the questionsdisplayed below.]

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

Capital AssetMarket ValueTax BasisHolding Period
L stock$54,800$43,400> 1 year
M stock32,80041,400> 1 year
N stock34,80024,400< 1 year
O stock30,80035,400< 1 year
Antiques11,8006,400> 1 year
Rental home304,800*92,400> 1 year

*$30,000 of the gain is 25 percent gain (from accumulateddepreciation on the property).

Ignore the Net Investment Income Tax.

a. Given that Ron and Anne have taxable income of only $24,800(all ordinary) before considering the tax effect of their assetsales, what is their gross tax liability for 2018 assuming theyfile a joint return? (Round all your intermediate computations tothe nearest whole dollar amount.)

b. Given that Ron and Anne have taxable incomeof $404,800 (all ordinary) before considering the tax effect oftheir asset sales, what is their gross tax liability for 2018assuming they file a joint return? (Round all yourintermediate computations to the nearest whole dollaramount.)

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1 Determination of gross tax liability for 2018 assuming they file a joint return provided Ron and Anne have taxable income of only 24800 all ordinary before considering the tax effect of their asset sales Capital Asset Market    See Answer
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