Need help on A and BMatt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $70,300. Meg works part-time at the same university. She earns $33,600 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)a. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year? Short-term capital gains$ 14,000Short-term capital losses(7,000)Long-term capital gains20,000Long-term capital losses(11,000)Total Tax Liability =b. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year? Short-term capital gains$ 1,500Short-term capital losses0Long-term capital gains18,000Long-term capital losses(15,000) Total Tax Liability= Tax Rates for Net Capital Gains and Qualified DividendsTaxable IncomeRate*Married Filing JointlyMarried Filing SeparatelySingleHead of HouseholdTrusts and Estates$0 - $80,800$0 - $40,400$0 - $40,400$40,401 - $250,8000%$0 - $54,100$0 - $2,70015%$80,801 - $501,600$40,401 - $445,850$54,101 - $473,750$2,701 - $13,25020%$501,601+$250,801+$445,851+$473,751+$13,251+*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included intaxable income last for this purpose). 2021 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over:But not over:The tax is:$ 9,950$ 40,525$ 86,375$ 164,925 $14,751 plus 24% of the excess over $86,375$ 209,425 $33,603 plus 32% of the excess over $164,925$ 523,600$10% of taxable income$ 9,950$ 40,525$ 86,375$ 164,925$ 209,425$ 523,600$995 plus 12% of the excess over $9,950$4,664 plus 22% of the excess over $40,525$47,843 plus 35% of the excess over $209,425$157,804.25 plus 37% of the excess over $523,600Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over:But not over:The tax is:$ 19,900$ 81,050$ 172,750 $9,328 plus 22% of the excess over $81,050$ 329,850 $29,502 plus 24% of the excess over $172,750$ 418,850 $67,206 plus 32% of the excess over $329,850$ 628,300 |$95,686 plus 35% of the excess over $418,850$10% of taxable income$ 19,900$ 81,050$ 172,750$ 329,850$ 418,850$ 628,300$1,990 plus 12% of the excess over $19,900$168,993.50 plus 37% of the excess over $628,300Schedule Z-Head of HouseholdIf taxable income is over:But not over:The tax is:$ 14,200$ 54,200$ 86,350$ 164,900 $13,293 plus 24% of the excess over $86,350$ 209,400 $32,145 plus 32% of the excess over $164,900$ 523,600 |$46,385 plus 35% of the excess over $209,400$10% of taxable income$ 14,200$ 54,200$ 86,350$ 164,900$ 209,400$ 523,600$1,420 plus 12% of the excess over $14,200$6,220 plus 22% of the excess over $54,200$156,355 plus 37% of the excess over $523,600

Capital Gain/Loss- When an asset is sold for less than its value, it results in a capital loss; when…

Answered: he couple does not itemize deductions.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Need help on A and B

Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $70,300. Meg works part-time at the same university. She earns $33,600 a year. The couple does not itemize deductions. Other than salary, the Comers’ only other source of income is from the disposition of various capital assets (mostly stocks). (Use the tax rate schedules, Dividends and Capital Gains Tax Rates.) (Round your final answers to the nearest whole dollar amount.)

a. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year?

Short-term capital gains	$ 14,000
Short-term capital losses	(7,000)
Long-term capital gains	20,000
Long-term capital losses	(11,000)

Total Tax Liability =

b. What is the Comers’ tax liability for 2021 if they report the following capital gains and losses for the year?

Short-term capital gains	$ 1,500
Short-term capital losses	0
Long-term capital gains	18,000
Long-term capital losses	(15,000)

Total Tax Liability=

Tax Rates for Net Capital Gains and Qualified Dividends
Taxable Income
Rate*
Married Filing Jointly
Married Filing Separately
Single
Head of Household
Trusts and Estates
$0 - $80,800
$0 - $40,400
$0 - $40,400
$40,401 - $250,800
0%
$0 - $54,100
$0 - $2,700
15%
$80,801 - $501,600
$40,401 - $445,850
$54,101 - $473,750
$2,701 - $13,250
20%
$501,601+
$250,801+
$445,851+
$473,751+
$13,251+
*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in
taxable income last for this purpose).

2021 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over:But not over:
The tax is:
$ 9,950
$ 40,525
$ 86,375
$ 164,925 $14,751 plus 24% of the excess over $86,375
$ 209,425 $33,603 plus 32% of the excess over $164,925
$ 523,600
$
10% of taxable income
$ 9,950
$ 40,525
$ 86,375
$ 164,925
$ 209,425
$ 523,600
$995 plus 12% of the excess over $9,950
$4,664 plus 22% of the excess over $40,525
$47,843 plus 35% of the excess over $209,425
$157,804.25 plus 37% of the excess over $523,600
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over:But not over:
The tax is:
$ 19,900
$ 81,050
$ 172,750 $9,328 plus 22% of the excess over $81,050
$ 329,850 $29,502 plus 24% of the excess over $172,750
$ 418,850 $67,206 plus 32% of the excess over $329,850
$ 628,300 |$95,686 plus 35% of the excess over $418,850
$
10% of taxable income
$ 19,900
$ 81,050
$ 172,750
$ 329,850
$ 418,850
$ 628,300
$1,990 plus 12% of the excess over $19,900
$168,993.50 plus 37% of the excess over $628,300
Schedule Z-Head of Household
If taxable income is over:But not over:
The tax is:
$ 14,200
$ 54,200
$ 86,350
$ 164,900 $13,293 plus 24% of the excess over $86,350
$ 209,400 $32,145 plus 32% of the excess over $164,900
$ 523,600 |$46,385 plus 35% of the excess over $209,400
$
10% of taxable income
$ 14,200
$ 54,200
$ 86,350
$ 164,900
$ 209,400
$ 523,600
$1,420 plus 12% of the excess over $14,200
$6,220 plus 22% of the excess over $54,200
$156,355 plus 37% of the excess over $523,600

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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