For a $104,000 of taxable income, including a long-term capital gain of $5,400, her gross tax liability is mathematically given as
T=$17479
Generally, the $95000 will be charged with an ordinary tax rate
Capital gain of $5000 will be charged by 12% rate.
Therefore, Tax on $95000
Tx = 14605.50+ 24%*(95000 - 85526)
Tx= $16879.26
ForCapital gain
Cx= 12%*5000
Cx= $600
In conclusion, her gross tax liability
T= 16879.26 + 600
T=$17479
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